Finance
In New York, which of the following is true about 'assumable mortgages' under modern conventional loan practice?
AAll conventional mortgages are freely assumable by any qualified buyer
BMost conventional mortgages are NOT assumable because they contain due-on-sale clauses; government-backed loans (FHA, VA) are generally assumable✓ Correct
CAssumable mortgages are only available for New York State-sponsored loans
DAssumable mortgages require DOS approval
Explanation
Most conventional mortgages in New York (and nationally) contain due-on-sale clauses that prevent assumption without the lender's consent. By contrast, FHA and VA mortgages are generally assumable, subject to qualifying requirements.
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