FHA Loans are Assumable

One of the benefits of an FHA loan is that it is assumable. What does that mean? It means that a qualified buyer, with the approval of your lender, can take over your existing loan. The new buyer would be responsible for the loan, not you.

 

Why would someone want to do this? If you have a 4% interest rate, and the going market rate is higher, say 6%, would you rather have a 4% rate? Call me for more details. 

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