Loan assumptions are no longer allowed on any conforming fixed-rate loans. Assumptions are still allowed on some ARM loans, as well as many other non-conforming programs—on a restricted basis. Many lenders today require more stringent underwriting requirements of the prospective buyer/assumer.
FHA and VA loans, for example, still allow assumptions on a limited and restricted basis. Many non-conforming loans on residential properties also allow assumptions, often with more lenient guidelines. Overall, loan assumptions on commercial properties and multi-unit apartment buildings are easier to arrange than residential loans.
If you are looking at an apartment building or commercial property, you may have better luck. Many commercial loans lenders are willing to let qualified buyers assume existing mortgages.
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