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I'm looking to take over my mothers mortgage, is mortgage assumption possible on other loans than va or fha?

I have good credit and stable income. Is it restricted to those two loans only? by ryan_pugh_88 from San Diego, California. Aug 21st 2013 Reply


Ryan,The Garn-St. Germain Act which is codified in U.S. Code section 1701j-3 allows for certain exemptions to the Due-on-Sale clause in many residential mortgages for certain people. You situation seems to fit. You probably won't need to do a formal assumption of your mother's loan, you would just take over making the payments on it. Here's a partial list of the exemptions:(d) Exemption of specified transfers or dispositionsWith respect to a real property loan secured by a lien on residential real property containing less thanfive dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housingcorporation, or on a residential manufactured home, a lender may not exercise its option pursuant toa due-on-sale clause upon--(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, orfrom an incidental property settlement agreement, by which the spouse of the borrower becomesan owner of the property;(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and whichdoes not relate to a transfer of rights of occupancy in the property;Good luck with that.Dan Marchiando, mortgage broker

Aug 21st 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

If your mother has passed away, then you can just take it over, if she has not, then it's possible she can add you to the title so long as she does not remove herself from title.. This should not trigger the due on sale clause.. so long as one of the original signers remain on title you should be ok. If you want to know for sure, you should consult a real estate attorney, or call the lender directly and ask them.. but a straight up assumption of a conventional loan is not allowed. you would need to purchase the property from your Mom and apply for a new mortgage.. 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. 480-287-5714 WilliamAcres.com

Aug 21st 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

Absolutely Ryan. Happens all the time. Andrew

Aug 21st 2013
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Curt Tiedeman (curttiedeman)
#46 ranked lender in Washington - 28 contributions

FHA and VA can be assumed, but you still have to qualify. Conventional - typically no unless it is a portfolio loan being held by the bank. Read the promissory note and deed of trust to see if there are any provisions/language for "Assumability". Good luck and let me know if you would like buy the home from your mother. She may be able to gift you sufficient equity to purchase the home without a down payment.

Aug 21st 2013
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MOST loans with assumption clauses require qualification. MOST recent loans ( Last 10-15 years) that have assumption are FHA or VA. You would need to read your mother's Deed of Trust and / or Promissory Note to see if her mortgage is assumable. I helped a client purchase his parent's home as their mortgage was not assumable by writing an Offer to Purchase. We structured the offer such that he and his wife were gifted the Equity and the balance was covered by the new mortgage. We made sure there was no tax issues with a tax professional and one of the escrow/title firms we work with.As a Mortgage Banker, I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders with Pinnacle Capital Mortgage Corporation. WE CLOSE LOANS on time for our CLIENTS!

Aug 21st 2013
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Dan Marchiando (dan@yourbestinterest.net)
#471 ranked lender in California - 29 contributions

Ryan,The Garn-St. Germain Act which is codified in U.S. Code section 1701j-3 allows for certain exemptions to the Due-on-Sale clause in many residential mortgages, for certain people. Your situation seems to fit. You probably won't need to do a formal assumption of your mother's loan, you would just take over making the payments on it, and save yourself the cost of a refinance.Here's a partial list of the exemptions:(d) Exemption of specified transfers or dispositions with respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on ... a dwelling unit in a cooperative ..., or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon--(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, orfrom an incidental property settlement agreement, by which the spouse of the borrower becomesan owner of the property;(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and whichdoes not relate to a transfer of rights of occupancy in the property;Good luck with property.Dan Marchiando, California Mortgage Broker

Aug 21st 2013
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Ken Burrows (mortgagesforamerica)
#20 ranked lender in Nevada - 572 contributions

Some are assumable but it's pretty much the same process as applying for a whole new mortgage.

Aug 21st 2013
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Ernesto Marez (Ernesto)
#68 ranked lender in Maryland - 137 contributions

The best way to find out ,is call the current servicer and discuss it with them.they will bw more than happy to assit you.if they say NO.you can purchase the home at 85% Loan to Value, using a Gift of Equity (since you are related.) on an FHA loan.emarez@thefederalsavingsbank.com

Aug 21st 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Ryan, see the exceptions which allow you to assume the loan without qualification. This is especially important if you do not live in the home. Short answer: just keep making the payments on time.

Aug 21st 2013
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