One of the unique lending instruments in the mortgage world is the assumable loan. With an assumable loan, you can actually take over the loan from someone else. This can be to your advantage as it allows you to get an interest rate other than what is currently in the market. While it can be to your benefit, you will still have to meet the credit guidelines that are set forth by the lender. You can not just take over the loan unless the lender says that you can take it over. With that in mind, here are a few things that you will want to consider.
Good Debt to Income Ratio
In order to qualify to assume someone's loan, you are going to have to have a decent debt to income ratio. Each lender is going to have their own ratio that they use. This means that your total amount of debt and your income have to be proportionate to the ratio that they set forth.
Solid Credit Score
You will also have to have a good credit score in order to qualify for an assumable loan. Your credit score says a lot about you and they will need it to determine your credit worthiness.