FHA Loans are Assumable
Many people do not realize that FHA loans are actually assumable.
What this means is that if you have an FHA loan at today’s historically low rates, and interest rates go up in the future, you can offer your low rate FHA loan to a qualified buyer as an incentive to make your home more appealing than other homes on the market.
With this said, if you do allow a buyer to assume your FHA loan, it is critical that you have them sign HUD Form 92210-1, Approval of Purchaser and Release of Seller, which removes the seller from any further liability with regard to the loan. FHA does not require this form to be signed, but without it, if the buyer who assumes your loan misses payments, your credit will be impacted.
You can download this form by going to http://www.hudclips.org/download/HUD-92210.1
The FHA loan limit in San Diego County is $697,500. In Riverside County it’s $500,000.
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