Buying a home and going for assumable equity loan

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We are thinking of buying a home with assumable loan. The seller owned the home for a long time and a few months ago he took a home equity loan worth $100,000 for some repairs on the home. But I don't think he owes anything else on the property except the equity loan. Should we do this? Or are there other options? Is there anything called non-qualifying assumable mortgage? And, should we go for one such program?

sara · Posted: Sun Dec 17, 2006 10:38 pm Post subject: RE: assuming a home loan

Hi Peter,

The seller was offered the home equity loan on the basis of his credit profile and not yours. So, it should be paid off from the proceeds of the home sale. It cannot be assumed until and unless the lender allows you to do so. And, as far as I know, home equity loans are generally not assumable.

Thanks,

Sara

colin · Posted: Mon Dec 18, 2006 6:17 pm Post subject:

Peter,

If your credit profile is good then you should think about taking out a new loan.

You just shop around and I am sure you will get lenders who would be more than willing to lend with your credit profile.

Let us know what happens.

Colin

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