Finance
What is 'assumption of mortgage' and when might it occur in Nevada?
AThe buyer gets a new mortgage to replace the seller's existing loan
BA transaction where the buyer takes over responsibility for the seller's existing mortgage — FHA and VA loans are generally assumable (with lender qualification); conventional loans typically have due-on-sale clauses preventing assumption✓ Correct
CThe seller assumes the buyer's pre-qualification for a new loan
DA Nevada state program allowing all mortgages to be assumed without qualification
Explanation
Assumption allows a buyer to take over the seller's existing mortgage, including its interest rate and remaining balance. FHA and VA loans are assumable with lender approval and buyer qualification.
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