Assumable, No Qualifying Loans - FHA and VA |
|
|
December 1, 1986 - FHA allows "No-Qualifying" on "Assumptions"
only after the first 12 months for "owner occupied" purchasers, and
after the first 24 months for "investor" purchasers. Ahhhh .. heaven! |
|
|
March 1st, 1988 - The "Wellenkamp" Supreme Court decision!
VA loans are no longer "assumable without qualifying" beginning
with loans issued on or after that day. We will really miss them! |
|
|
Starting with appraisals done on or after December 15, 1989, the
FHA stops offering "investor loans". All "HUD Owned" properties
are still eligible to all investors, but you still have to qualify! |
|
|
December 15th, 1989 - Additional fallout from the "Wellenkamp"
Supreme Court decision! FHA loans are no longer "Assumable
Without Qualifying" beginning with appraisals issued on that day.
The party is over! It's the end
of "assumable/no qualifying" loans. |
ALL IS NOT LOST! There are still many assumable/no qualifying
loans available in Las Vegas! ... not to mention all the free-and-clear
homes out there with people willing to "carry the paper" (finance your
purchase), or just need to sell fast! Always consult a professional first! |
WARNING! No matter what anyone says, it is a breach
of the terms of
any note to do a "carryback", (wrap around, etc.), if the note contains a
"due-on-sale" or an acceleration clause. If the lender ever finds out that
a sale has taken place, you run the risk of foreclosure! ... which means
losing all your down payment, your credit, and most of all - your house! |
This is especially true if FHA or VA loans are involved. Title companies
who handle these sales - even with "full disclosure" to buyer and seller,
run the risk of losing the ability to handle the closing of all government
backed loans, and face the possibility of a stiff fine or other legal action!
Some say, "Don't worry until someone finds out!" Be aware of the risks!! |
©Copyright Bart Austin - REALTOR®. All rights reserved. |
|
