Does anyone know about the fha loan where you pay some now and repay the rest when you sell the house?
Trying to find some info on a loan I heard a woman during the debate talking about. Some how it greatly reduces your loan payments and you pay the extra back when you sell the house.
- GemLv 71 decade agoFavorite Answer
This is already for people that are in their homes and unable to make their payments.
They aren't offering this loan to people that are just now buying.
Has to do with a short sale & reaffirmation of debt.
- Dan BLv 71 decade ago
It sounds like a negative amortization loan. You pay less than the normal principal and interest. The shortage is added to your loan balance. Then when you sell the house, you make up the difference. Trouble is, I don't think anyone in their right mind will write you a note like that, and you'd not be in your right mind to take out a loan like that. If the housing market takes a crash, like NOW!, you'll be paying on a house that you can't sell and no one would buy because you owe more than it's worth.