Home › Forums › Housing › assumable loans in high interest environment › If someone assumes an FHA
If someone assumes an FHA loan, they assume the balance owed AND remaining term.
They have to pay the difference of (SALES PRICE- the amount owed on mortgage at time of sale) in CASH…Potential buyers may be strapped for cash.
Keep in mind also the high mortgage insurance premium for FHA loans.
It really depends when you sell it, and how much you’ve paid off. Here is a recent article that discuss this aspect a bit http://www.boston.com/realestate/news/articles/2010/02/08/finding_value_in_loan_assumptions/?page=full
