Use this first tuesday FARM Letter Info-Flyer with your existing clients to provide a clear, published answer to their frequently asked questions. To request a FARM letter or Info-Flyer topic, or to see a list of all our FARM templates, visit our FARM Letter page.
Conventional mortgages are non-assumable; sale of the property triggers the due-on-sale clause. Any assumption [and the terms thereof] would be entirely discretionary with the lender. The article seems to imply – incorrectly – that that the buyer has any right to an assumption.
A glaring omission -as to sellers – is that a VA assumption leaves the seller still liable for the loan if the buy defaults, unless the assuming buyer is another veteran who substitutes his eligibility. VA borrowers are NOT protected by CA anti-deficiency protection.