Are FHA loans assumable when the home is worth less than the loan?

Posted on Oct 16, 2012 in FHA Information

Question by lran_vt: How are the consumers who signed and received reverse mortgages making out in this time of economic downturn?
None of the news articles are addressing this problem. And my friends wont tell me how they are making out financially.
Just curious.

Best answer:

Answer by shippywoman
They don’t have a change and are still spending down equity.

What do you think? Answer below!
Question by : Are FHA loans assumable when the home is worth less than the loan?
My friend and I purchased a home together a couple of years ago. I potentially will be moving to another city because of a job transfer. Can she assume my portion of the FHA loan? The home is currently worth less than the loan by about $ 30K.

Best answer:

Answer by Steve D
Nope…no one has written an assumable loan in years. However, health the mortgage contract will have a clause that says whether the loan is assumable or not. If the home is underwater, nurse then there is very little chance that your friend will be able to re-finance in their name only, which would be the only way you can get your name off the mortgage.

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5avg.rating 29 votes.

One Comment

  1. FHA loans are assumable, but not in this scenario even if your friend was originally on the loan.