I am currently looking at a park and the broker tells me that the mortgage is assumable.
My questions…
Would there be closing costs?
What’s needed to quality?
How does the seller and broker get paid?
Anyone have any experience with this type of deal before? What happened?
We have done these many times. As far as what’s required to qualify, that’s up to the bank, and varies greatly between institutions. Yes, there will be closing costs, just like any other purchase. The broker gets paid his commission on the entire transaction – but that’s between him and the seller. The seller gets paid the difference between the sales price and the note obligations.The benefits to this type of financing tool is that you don’t have to convince the bank to make the loan, or educate them on the property. So, next to seller financing, these are normally the easiest loans to successfully complete.
Thank you Frank that was very helpful!
Does it matter how motivated the sellers are in this case? If the bank asks for a down payment can the sellers agree to carry that down payment? How much will I need to put down?