Homes in Irvine with assumable mortgage?
- Thread starter momopi
- Start date
sgip
Well-known member
With ARM's (after fixed period expires - minimum vintage 2019 origination date), FHA ( low loan limits mean primarily used for condo financing) and the exceedingly rare VA deal, it's going to be pretty slim pickings for Irvine. Given the very high down payments and rapid appreciation, if there was an assumable loan available you'd need a great deal of cash to bridge the loan to sales price gap.
I'd guess the number of homes sold with an assumption of the original loan is 1 or 2 in 2023 what with the above constraints.
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Maybe this is a really stupid question, but why can't you get another mortgage loan to cover the gap? Are you not allowed to have 2 mortgages on one property?
sgip
Well-known member
It's possible, however HELOCs for purchases are limited to 75-80 Combined LTV. The rate on a HELOC may be 8-9% negating some of the benefits of the assumable 1st. This assumes also that during the purchase the seller doesn't have an "all cash, quick closing" offer that will most likely push any complicated assume/2nd loan financed offer.
I'd still try to make it work. You never know what the seller may want in a buyer.
So the second loan would be a HELOC on the property being purchased?
sgip
Well-known member
Yes. Fixed 2nd loans have higher rates than HELOC's. Traditional Agency 1st TDs cannot be used as purchase money 2nds. You might be able to convince the seller to carry a 2nd, (6-7% rate would be attractive...) but again, you're going against simpler offers or all cash when hoping to buy a property with an assumable loan and any amount of complexity will more than likely kill your offer chances for success.
Thanks for the info. That's discouraging. We have full VA eligibility but could never come up with the massive amounts of cash that would be needed to assume a VA loan (even though I know they are super rare). Just takes one more option off the table.
sgip
Well-known member
Thank you for your service.
Buy VA at a high rate today, and keep refinancing using the VA IRRL process. VA rates are better than Agency and Non Confirming Jumbos so you've got that in your favor.
On the other hand, your Realtor will need to educate the listing agent and the Seller that VA loans don't take longer, are not more expensive, and are not a hassle. Most "small r" realtors are morons and shy away from VA transactions because the process uses multisyllabic words and difficult to grasp concepts like "financing". If your Realtor can send in the offer written in as many bright colored crayons as possible, I think your chances of acceptance improve geometrically.
SARC/off
Truly hope you find success out there.
Thank you. No plans to buy right now when our rent is less than 50% what our housing payment would be if we bought. Plus, there are absolutely zero homes in our price range anyway (under $1.3M).
We need a larger 4bd home as we have adult disabled children living with us for life. We are in a 3/2 sub 2000sq ft rental now and it's serviceable, but absolutely not large enough for the next 30 years.