Although the FHA has changed some of their requirements, it’s important to take note that FHA loans are still assumable. That means buyers looking for a deal can “take over” FHA mortgages from sellers that have them.

The Washington Post explains:

“The major force behind assumptions is the ability of buyers to get financing at an interest rate lower than that currently charged by lenders. If the home seller has a mortgage with a rate below the market rate, having the buyer assume the seller’s loan can be better for both. The buyer enjoys a lower rate and avoids the settlement costs on a new mortgage.”

FHA mortgages are just about the only type of home loans that are assumable these days. They also offer lower interest rates and more generous qualifying requirements than conventional loans.

See Also:

FHA Mortgage Guide

Tags | assumable mortgage, creative financing, FHA