The Hidden Power of Assumable Loans in Real Estate which Unlock Premium Prices
A question you should ask every seller when you’re about to list a property is: "Do you have an FHA, USDA, or VA loan?"
These loans are often assumable, making the property highly valuable. If they have an interest rate below 5%, the house can fetch a premium price.
For example, if current interest rates are at 7% and a buyer can assume a 4.5% loan, it's a fantastic opportunity. There are some caveats, though. Be cautious about locking up veterans' benefits, preventing them from using those benefits elsewhere. If the seller is retiring or doesn't plan to own another home, they might be okay with someone assuming their loan.
For USDA and FHA loans, the buyer must qualify. They can't be a deadbeat; they need to qualify for the loan. Most buyers in a position to assume these low-interest loans will be thrilled, and your sellers can get a premium price.
Start asking sellers, "Do you have an FHA, USDA, or VA loan, and would you be okay with it being assumed?" There are many...
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