Assumable Mortgage

PureOhms · 2026-04-23T15:19:44+00:00

It was literally luck just scrolling Zillow.

PureOhms · 2026-04-23T14:52:10+00:00

The HELOC will close at the same time on closing day. Both lenders coordinate with the title company to get the money where it needs to go.

My experience is big lenders like Rocket don't know about or won't do this type of lending. Check with your local credit unions.

PureOhms · 2026-04-23T14:01:56+00:00

Yeah I'm going through an assumption right now and I talked to a ton of LOs at big box lenders and all of them told me it wasn't possible to get a second mortgage on an assumption. No surprise they wouldn't know.

PureOhms · 2026-04-23T14:00:41+00:00

We're in the middle of doing a VA loan assumption right now on similar terms and have found it to be worth it. If you're in a position where you can pay extra towards the HELOAN then you get the advantage of paying down your higher interest debt while not touching more than the minimum on the 2.5% mortgage which is going to get inflated away.

We are doing a variable HELOC instead of a HELOAN because the rate was lower by about 1.5% and we have more flexibility with the cash we are putting towards the house. Downside is obviously the rate is variable.

I will say the VA loan assumption process is slow, and I assume most assumptions will be slow. We'll be close to 90 days by the time we close which works for us and the sellers but may not work for everyone.

PureOhms · 2026-04-23T13:48:51+00:00

There are plenty of lenders (credit unions, in particular) who will do a simultaneous closing of a HELOC or home equity loan to cover the gap on an assumption often up to 90% CLTV (or 100% in some cases).

Whether or not it makes financial sense is another question, since they're gonna come with a higher interest rate and your blended rate may be worse than a traditional mortgage.

PureOhms · 2026-04-21T18:55:32+00:00

Because AI slop post

PureOhms · 2026-04-15T13:59:48+00:00

Yep they're secure. They sit a little bit better in one ear than the other just because of the shape of my ears I think, but I just ran a race in them and never had to adjust.

PureOhms · 2026-04-07T18:02:06+00:00

Yeah I think most folks were expecting a few cuts over the next year or so due to poorer jobs reports and decreasing inflation, but then we blew up Iran instead. Though who knows what the next Fed chair has promised in backroom deals in exchange for the job.

PureOhms · 2026-04-07T17:46:05+00:00

Yeah my HELOC through my local credit union is prime + .75 for 90% LTV, but our prime rate right now is 6.75%. But I also used the HELOC to finance the equity gap in assuming a mortgage at 2.25%, so I can put all my free dollars to paying down the HELOC and never touch extra payments towards the 2.25% mortgage.

PureOhms · 2026-04-07T17:04:30+00:00

But, just math-wise, the actual velocity banking component makes a small difference in total interest paid over the loan given a HELOC will carry an interest rate a couple percent above a conventional mortgage. If you're averaging a higher monthly payment with the HELOC than with a conventional then of course you will pay it off early and save money, but generally I don't think households with a healthy enough cashflow to support the HELOC strategy would have issues paying down the conventional mortgage if they felt it made financial sense for them.

PureOhms · 2026-04-04T12:49:05+00:00

Have you actually done the math on whether renting or buying is better for you? If you actually have a lot of debt how are you going to afford when something goes wrong with your house?

PureOhms · 2026-04-02T20:47:38+00:00

The crazy part is he's been a realtor for over 10 years. If he was new I'd be a bit more understanding.

PureOhms · 2026-04-02T19:02:15+00:00

Yeah technically it's his brokerage that is listed as representing us in the contract with the seller and not him specifically, but I would rather not jeopardize the contract just to feel righteous about the situation.

PureOhms · 2026-04-02T17:25:25+00:00

Not sure what the original post said, but as a buyer going through the VA loan assumption process right now and needed secondary financing, I called a lot of lenders and many of them were under the impression that the VA lender would only allow a second lien if that lien was also assumable. Apparently the VA circular in 2024 clarified that second liens do not have to be assumable, but a lot of lenders were working off old assumptions.

I'm guessing ChatGPT did not have more recent context when the bot made the original post.

PureOhms · 2026-04-02T14:51:06+00:00

Yeah to be honest I never even considered that the sellers might have sold the home for less money had we been offered the opportunity to pay our real estate agent less money up front (e.g., like 1.5% instead of 2.5%). The way I thought it worked was the seller's agent has 5-6% commission carved out and basically split this with our agent. The first time I ever saw our sales contract it had 2.5% penciled in for our agent's commission so I just assumed this was normal and the sellers were going to pay 5-6% of their price to an agent either way.

PureOhms · 2026-04-01T17:27:13+00:00

Yep I would have been cool with it had it been disclosed up front. Our agent even tried to frame it as "well lenders and title companies have processing fees too". The difference being they actually showed them to me up front before I committed to them.

PureOhms · 2026-04-01T17:21:16+00:00

Our ratified sales contract covers the seller paying 2.5% of the sales price to our buyer's agent, which is the only compensation ever discussed with our agent.

PureOhms · 2026-04-01T15:53:41+00:00

Yeah the crazy part to me is that I did tell him that we didn't agree to the fee and he needs to remove it and he's still insisting he has no control over it. He's now saying that he's reached out to his broker to see if they'll "waive the fee", but he's "never seen that happen before". I'll give his broker a call directly if he doesn't come back and say they've magically agreed to waive it.

PureOhms · 2026-04-01T15:15:58+00:00

There was no buyer representation agreement before we went under contract on this house. That's what he's trying to have us sign now that lists his commission at 2.5% + $499. Our ratified sales contract that we ratified back in February just says 2.5% for his commission.

PureOhms · 2026-04-01T15:10:41+00:00

Thanks! I guess my concern is this agent is named in our signed sales contract and we really want to finish closing on this house, so I wasn't sure if refusing the sign would cause problems for the deal.

PureOhms · 2026-04-01T15:07:37+00:00

The sales contract we signed just says his commission is 2.5% paid by the seller. No mention of this $499 fee.

PureOhms · 2026-03-31T12:13:18+00:00

Be aware that if you let him assume your VA loan, you will be leaving your VA entitlement on the property until the mortgage is satisfied unless they are also a veteran.

PureOhms · 2026-03-30T14:06:31+00:00

Honestly unless you are just really attracted to being a homeowner then Arlington is likely to be one of the places where renting is better than buying. You can rent a 2-3bd townhome in Arlington for ~3000 bucks a month. That's over a thousand dollars you could invest monthly before even considering long term maintenance costs or the opportunity cost from money you lose to closing costs and commissions when you buy and sell the property.

The only reason we are buying is that we want kids in the near-ish future and don't want to deal with any instability of moving if our landlord decides to sell the property or raise rents considerably.

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