Terry Day in the News: Press on Assumable Mortgages

Three news outlets have covered my work with assumable FHA and VA loans: Phoenix Agent Magazine in November 2023, Business Insider at the end of December 2023, and ABC15 Arizona in January 2024. Each story looks at how a buyer can take over a seller's existing loan, and two of them follow my own purchase in Goodyear.

See assumable homes for sale Call Terry: 602-483-4665

ABC15 Arizona: the "mortgage cheat code" (January 4, 2024)

ABC15 ARIZONA

Reporter Jamie Warren built a local news story around assumable mortgages, using my own purchase as the example. I was out looking for a home for a client in the fall of 2023 and ended up buying one in Goodyear myself, because the seller had an FHA loan I could take over. The story walks through why that matters when new loans cost far more than older ones, which loan types can be assumed (FHA and VA), and the part most people miss: the buyer has to cover the gap between the price and the loan balance, with cash, a second loan or seller financing.

My advice in the piece was simple: ask your agent about assumable loans before you rule out a home. The term I used on camera, "mortgage cheat code," stuck.

Read the ABC15 story

Business Insider: how I assumed a seller's FHA loan (December 2023)

BUSINESS INSIDER

Business Insider profiled the same Goodyear purchase in more detail. The article covers the home I bought in October 2023, how the assumption worked, what it cost to close, and how much harder the lender was to deal with than I expected. It also shows the step that surprises buyers: there is still an approval process, and the lender may ask for paperwork you do not think it needs.

The lesson I took from it, and the reason I now walk every buyer through it, is that an assumption takes patience and a plan for the equity gap. When those two pieces are in place, it can be one of the best tools a buyer has.

Read the Business Insider article

Phoenix Agent Magazine: assumable loans, explained for agents (November 1, 2023)

PHOENIX AGENT MAGAZINE

This one was written for other real estate agents. Emily Marek interviewed me about why so few agents bring up assumable loans: many were never trained on the process, and the local MLS does not require a listing agent to say whether a home's loan can be assumed. The article explains the basic math of taking over a loan and paying the seller for their equity, and it mentions the classes I teach agents on assumptions.

Read the Phoenix Agent Magazine article

What the coverage means if you are buying or selling

All three stories land on the same point: an assumable loan is a real option in Greater Phoenix, but it is not automatic. Here is how I use it day to day.

• Buyers: I check whether a home's loan may be FHA or VA, talk through the equity gap up front, and plan for a longer closing timeline than a regular purchase.
• Sellers: if your loan can be assumed, it can be a selling point worth putting in front of buyers. I explain what the servicer will ask for and what an assumption means for you before you agree to one.
• VA loan holders: ask how an assumption affects your VA entitlement before you agree to one. That is a question for your loan servicer and the VA.
• Everyone: rates, terms and approval come from the loan servicer, not from me. I help you find the homes, run the plan and negotiate the deal.

For the full story in my own words, read I Assumed an FHA Loan on My Own Home. Here's What I Learned. To search homes that may have an assumable loan, start on my assumable mortgage homes page.

For reporters and editors

I am glad to talk about assumable FHA and VA loans, buying and selling in Greater Phoenix, relocating to Arizona, and 55+ communities in the Valley. I have more than 20 years in the business, and I coach and mentor other agents. The fastest way to reach me is a call or text to 602-483-4665.

Questions people ask

Which outlets have covered Terry Day?
ABC15 Arizona (January 4, 2024), Business Insider (December 2023) and Phoenix Agent Magazine (November 1, 2023), all on assumable mortgages. Links to each story are above.

What is the "mortgage cheat code"?
It is the name I gave to assuming a seller's existing FHA or VA loan instead of taking out a new one. The buyer takes over the loan and its terms, subject to the servicer's approval, and pays the seller for the equity above the loan balance.

Can any home loan be assumed?
No. FHA and VA loans are generally assumable with the servicer's approval, while most conventional loans are not. The servicer confirms whether a specific loan qualifies.

How long does an assumption take?
Usually longer than a regular purchase, because the loan servicer handles the approval and can be slow. I build extra time into the contract so a delay does not put the deal at risk.

Do I need cash to assume a loan?
Usually, yes. The difference between the price and the loan balance has to be covered, by cash, a second loan or seller financing, plus closing costs. We work that out before you write an offer.

Questions about an assumable loan, a home you saw in one of these stories, or a media request? Call or text Terry Day, DeLex Realty, at 602-483-4665.