Forgotten Your Password?

Need to Register?

Question Icon

can I do an assumable mortgage transfer to my daughter for little to no money

by lremillard418 from Northborough, Massachusetts. Apr 5th 2016 Reply


George DeVine (gdevine)
#7 ranked lender in Rhode Island - 44 contributions

Only if there was an assumable provision in the covenants of the original mortgage. An FHA mortgage is the only loan that typically has an assumable clause. If you're looking for your daughter to take ownership of the property, there are ways to structure a purchase whereby she won't need to put any money down. This is predicated upon having equity in the property, and selling below market value.George DeVinegdevine@goahl.comnmls 12937

Apr 5th 2016
1
0
William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Much more info needed to answer your question.. First... if you're talking about a "No-Qualifying" assumption.. then the answer is NO.. these types of loans stopped in 1988... However, if your daughter can qualify, then certain government loans might be assumable.. FHA, USDA, and VA (must have VA benefits' eligibility) all have Assumptions available "With Qualifying".. The process is no different than if she were to go out and apply on her own.. she would still need to have sufficient credit scores, have acceptable job history and provide all required supporting documentation such as tax returns, w2's, pay stubs, bank statements.. etc.. Most lenders will charge an assumption fee as well as an underwriting fee, but typically these fees are under $1500.. so if the interest rate on your qualified government loan is lower than the current loan rates, then it would be a huge benefit for her to assume your existing loan.. if however your loan is not one of the above listed, then it would not be assumable at all.. The only exception to this rule is regarding an heir.. if she were to inherit the home upon the death of the owner(s)... then the lender must allow her to continue making payments.. and she would not need to qualify at all. Also understand that if you remove yourself from the deed, and deed the home to her.. this could trigger a "Due on sale" clause, which basically means, the lender will want to be paid off within 90 days or they will foreclose. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Apr 5th 2016
1
0
Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

Only is there is an assumable clause in your present loan.

Apr 5th 2016
0
0
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

really depends on the type of mortgage you have now. There will be some cost under any circumstances to review her qualifications

Apr 5th 2016
0
0
Subscribe to our news feed.