A mortgage assumption allows a successor in interest to assume the original borrower’s mortgage under certain circumstances such as death and divorce.
What Option is Right for You?
To see if your situation qualifies for an assumption, compare the below two options:
Qualified Assumption
Allows for full assumption of loan and all liabilities
Loan approval process similar to refinancing
Credit and income qualification required for assuming borrowers
Not all loan types are assumable
A Qualified Assumption (QA) allows existing borrowers to be released from liability on the existing loan while maintaining the same term and conditions for the assuming borrower. QA loan approval process is similar to refinancing and includes income and credit qualifications. While there are no appraisal costs, third party fees like credit reports, flood certification and property ownership reports will apply.
Simple Assumption, or a Name Change and Title Transfer Request
Transfer of title
Simple name change
Removal of deceased borrower(s) names from title
No income or credit qualification necessary
A Simple Assumption allows for changes to loans that don’t result in a release of liability, including name changes, transferring ownership to a Trust or adding family members to the title. There is minimal and sometimes no cost to these changes and it does not require income and credit qualifications.
Are either of these options the right solution for you?
If so, click below to begin your application and connect with a RoundPoint loan officer.