Posted on: 19th Apr, 2010 02:28 pm
My husband and I have a home we own as our primary residence. We are looking at an assumption for a house for our daughter who has Down Syndrome and my sister and law to live in and to pay some rent on.
We made an offer on a house and it was accepted. However, the paperwork from the bank says if we assume the mortgage, my husband and I must live there. Is there a legal way around this?
Thanks,
Bev
We made an offer on a house and it was accepted. However, the paperwork from the bank says if we assume the mortgage, my husband and I must live there. Is there a legal way around this?
Thanks,
Bev
Hi bevluck,
The qualifying requirements to assume a mortgage would vary from one lender to another. While some lenders would want you to use the home as your primary residence, others may not have any such requirement. If your individual lender wants you to live in the home in order to be able to assume the mortgage, you will have to do so.
However, is it really necessary for you to assume the mortgage? If you want to help your daughter with the mortgage payments, you can sill do so without having to assume the loan. As long as you keep making the payments on time, the lender would not be bothered about who is on the loan and who is not.
The qualifying requirements to assume a mortgage would vary from one lender to another. While some lenders would want you to use the home as your primary residence, others may not have any such requirement. If your individual lender wants you to live in the home in order to be able to assume the mortgage, you will have to do so.
However, is it really necessary for you to assume the mortgage? If you want to help your daughter with the mortgage payments, you can sill do so without having to assume the loan. As long as you keep making the payments on time, the lender would not be bothered about who is on the loan and who is not.