Seller Mia has an FHA-insured mortgage with a below-market interest rate. A buyer asks whether the loan can potentially be taken over instead of getting a brand-new mortgage. Which statement is most accurate?
Correct Answer
B) FHA-insured single-family forward mortgages are generally assumable under program rules
That is the most accurate statement. Current HUD guidance explains that FHA-insured single-family forward mortgages are generally assumable, although program rules and lender approval requirements still matter in the transaction.
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