Finance
An assumable FHA loan allows a creditworthy buyer to:
AAssume the loan only if the seller has paid it down to 50% of the original amount
BTake over the existing FHA loan with HUD/lender approval✓ Correct
CAssume the loan without notifying the lender
DAssume the loan only if it was originated after 1989
Explanation
FHA loans originated after December 1, 1986 are assumable with lender approval and qualification of the assuming buyer. The buyer assumes the remaining balance and the original interest rate, which can be advantageous in rising rate environments.
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