SIX QUESTIONS, ASKED BEFORE THE OFFER, KEEP AN ASSUMPTION FROM ENDING AT ITS OWN DEADLINE.

First, is this specific loan assumable, and when did it close: FHA mortgages originated before December 1, 1986 generally carry no restriction, while those closed on or after December 15, 1989 require credit qualification of the assuming buyer (HUD Handbook 4155.1, VERIFIED). Second, what will the assumption cost: an FHA lender may charge a processing fee of up to $900 plus third party costs and up to $45 for release of liability forms (VERIFIED, FHA Mortgagee Letter 2016-24; the servicer quotes the current cap), and a VA assumption carries a funding fee of 0.5 percent of the balance at closing (VERIFIED, VA Circular 26-23-10).

Fifth, what do you need to fund and close the assumption: the contract requires the seller to deliver copies of the loan documents, including the note, the deed of trust and any modifications, to the buyer by the existing loan deadline, and the buyer may terminate before the existing loan termination deadline if the provisions are unsatisfactory (Section 5.4, VERIFIED). The title company will say what else it requires from the servicer to close on an assumed loan.

Sixth, what is your realistic current processing time for this loan type. HUD's 45 day standard for the creditworthiness review and VA's 45 calendar day standard for a complete application are rules (VERIFIED), not measurements of a particular servicer, and VA has had to remind holders of their compliance duties (PROBABLE). The honest answer to this question is the one that sets the loan transfer approval deadline in the offer.