What is an assumption?
It is sometimes possible for buyers to assume an existing loan, depending on the seller’s loan agreement with the lender. When a loan is assumed, the buyer agrees to take over the seller’s obligation to repay the lender. Often a buyer assumes an existing loan because its terms are better than those the buyer could negotiate for a new loan.
An assumption is the process of a borrower transferring their property ownership to someone else. There are two different types of assumptions, simple and qualifying. The transaction you are trying to accomplish determines which type of assumption is applicable to your loan. Also, your Deed of Trust may prohibit a qualifying assumption. A simple assumption is a transfer of mortgaged property from one or more persons to another. It is called “simple” because this type of an assumption requires the signing of only a few documents to transfer “ownership” of the property to someone else. An example of a simple assumption is the death or divorce of a co-borrower where the borrower wants the co-borrower’s name removed from the loan. In the case of a simple assumption, the “liability” of the mortgage (debt) is not transferred. The remaining borrower is still responsible for repaying the balance of the loan. A qualifying assumption involves the sale of the property and requires the buyer to qu
FHA and VA Loans Are Assumable: First, what is FHA and VA? FHA stands for Federal Housing Administration. The Federal Housing Administration is a government backed organization that insures residential mortgages. FHA mortgages are typically one of the safest mortgage options available. The VA, or Veterans Affairs, is another government backed organization that caters specifically to military veterans and their family members. Loans insured by FHA and VA have always been assumable. During periods when borrowers are concerned about future rate increases, or in times of limited credit availability this gives them an edge. An assumption of a loan is when one person takes over a loan from someone else. The terms of the loan stay exactly the same but the responsibility changes hands. The person that originally had the loan is completely released of liability and the person who has assumed the loan is now the owner of the home and makes all the payments. Assumption of these loans requires app
An assumption is a value that is used as input to an analysis. They are usually changeable and apply to an entire scenario. Assumptions can be a way to express subjective inputs, such as how much weighting to give to a particular community value like open space or economic development. What is an Indicator? Indicators are impact or performance measures that help people choose alternatives that best match their objectives or desired outcomes. An indicator is a calculated value that represents the impacts or outcomes of a scenario. An indicator might be used to evaluate costs, revenues, average household size, “community benefit”, or total daily auto trips. What is an Attribute? A piece of information describing a map feature. The attributes of a census tract, for example, might include its area, population, and average per capita income. Attributes can also be a characteristic of a geographic feature described by numbers, characters, images, and CAD drawings. For example, the attributes
