All FHA and VA loans are assumable by qualifying for that mortgage assumption.  These assumptions are not available to the real estate investor, only the person who is buying, and will be the owner occupant.  The buyer has to qualify by credit and income to take over the loan.  At times, the low interest rate was the main driving force to do a mortgage assumption, in 2007 and beyond the main reason may be the lack of mortgage funds available to the borrower from lenders.

     Being able to pay cash for the equity in a property, (the amount of value above the loan balance) is the easiest, and most profitable way for a potential owner occupant buyer to buy the property with the combination of an assumable loan, and equity.  Another way would be if an owner will carry back a second mortgage, with some cash down.

     Along with the qualification, the FHA and VA will charge an assumption fee.  Find out what the amount of this fee is before proceeding.  Also in the paperwork should be a release of liability from the loan for the original mortgagee.

     There are some FHA loans, and VA loans that are assumable by anyone without qualification.  This means, someone with any kind of credit, and an owner occupant, or investor can take over the loan without a qualification process.  There are not many of these out there, because the FHA loan had to be closed before December 14, 1989, and the VA loan closed before March 1, 1988.  However, most of the time, there will be a high amount of equity in the property that will have to be paid.

     Check with you lender to get the current exact paperwork, and procedure to follow, as well as the fees involved.  This is just another financing help for real estate that may be very valuable to sellers, and buyers, now, and in the future.