Need some info on assuming a mortgage,

[Flare]

Hi there



Long story short my sister has a rental property that makes really good money and she wants to sell it. So I figured I could assume it.



My questions:

If I assume it do I need 20% down because it will be a rental property?

Is there any other issues assuming a rental property?



I have a good job and good credit and would qualify for the mortgage with no issues. But I dont have the 20% downpayment if thats a issue.



I've looked for answers but I haven't tracked down the right person yet.

Thank you

 

[RobMacdonald]

Each bank will treat the assumptions differently. If the property is a rental property, and will remain a rental property, the bank may not be comfortable with the 'gift' of equity from your sister to you.



Some lenders may make an exceptions, but this is one of those policies that could go either way depending on who you talk to. Their may be some other policy, like a net worth requirement, that you must meet as well.