If I assume a mortgage will I still qualify for the 1st time home buyers credit?
Tags: current interest rate, deal of a lifetime, first time home, first time home owners, landlord, mortgage, tax credit, time home owners
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on Sunday, February 7th, 2010 at 3:24 pm and is filed under home equity loan refinancing interest rate.
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Most mortgages written are not assumable simply by taking them over. If you want to assume an existing mortgage then you must apply through the lending institution for an assumption mortgage loan package. They would accept an mortgage loan application package after which they would approve your assumption documents based on your income and other requirements.
If the financial institution approves your assumption then you would have the same interest rate as well as the same terms.
Since you are assuming the mortgage loan the lender would want you on the title deed, therefore you would need an escrow closing agent and a title company to complete the transaction.
Under these circumstances you would be eligible for the home buyers credit. The other part to you being a able to take advantage of the buyers credit is the landlord can not be a relative of yours. If the seller is a relative of yours you are not eligible for the first time home owners credit.
Investors use another legal method to assume loans without going through the mortgage loan assumption package from the lender. They place in the sales contract that the transaction is "Subject to the existing mortgage." The escrow closing agent and the title company would understand this term and would take the appropriate action to close this transaction.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"