how does a non qualifying assumable home loan work?
It's my parents home & land, they are buying another and offered me their non qualifying assumable loan on the old place, I just haven't sat down and talked it out with them yet, other than the balance is under $30,000.00 left.
- Beverly SLv 71 decade agoBest Answer
Their loan must be VERY old. Non qualifying loans have not been made in 25-30 years. But let's say for your case it is. You would just take over their loan by signing some docs. However, if they want more than 30k for the house you won't be able to get a loan for the difference (which would be a 2nd mortgage) if you can't qualify for a new loan on your own.Source(s): 23 years mortgage business.
- knowitallLv 71 decade ago
I may work like a scam. Years ago these were used a lot - the owner could sell you the house and you take over his loan with no approval from the mortgage company. If you defaulted, the previous owner would be left owing the balance of the loan. Mortgage companies stopped making these loans because of the many problems that arose due to this. I seriously doubt if you actually have one of these. If someone is trying to sell you a house and telling you it is assumable, he is probably lying and you will end up with the loan being called due and unable to re-fi. Be careful - verrrrrry verrrry careful.
- Expert8675309Lv 71 decade ago
The problem is, THEY may have offered it to you, but the bank will not allow you to assume the loan.
Banks haven't doing assumable loans in about 30 years.
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- 1 decade ago
the mortgage company is never going to go for this. you would be far better off in this market to either buy the home from them outright (this would make me nervous as mixing business and family is seldom a good idea) or renting the home from them for the time being.
- Anonymous1 decade ago
it means there is no credit check, you just sign the mortgage papers, they are almost unheard of these days