2024-02-04 19:15:44
Applying for a mortgage in the US is one of the goals of many citizens, especially migrants. However, rates are above 6% for a 30-year term, which complicates the aspirations of thousands of people. Still, with the alternative of assumable mortgagesome people will be able to purchase a home with a rate of less than 5%.
This is an alternative that gives the client the possibility of buying a house or apartment with the condition that they take charge of the mortgage loan from a seller. In this way, users take advantage of financing with a interest rate much lower than the market average.
In this sense, a large number of government-backed mortgage loans are acceptable, but to enjoy the benefits you must meet the following requirements:
- That the buyer’s credit score is positive
- Customer debt-to-income ratio
- Employment history
- User’s payment capacity
- Asset Verification
Read also: This is how you can request residency for your parents in the US
How does an assumable mortgage work?
On the other hand, specialists indicate that this type of mortgage works in the same way as a traditional real estate loan. However, its main difference is that the buyer finances through the seller’s lender.
Despite this, the mechanism gives the advantage that it does not require an appraisal to execute the appraisal. Even so, it is recommended that clients request a home inspection to detect any problems that warrant repair.
Finally, once the client closes on the asset, the seller will no longer be responsible for mortgage payments.
With information from Solo Dinero
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