WCDA loans may be assumable if the buyer meets the necessary requirements of the mortgage insurer (FHA, Rural Development, and VA, or the applicable primary mortgage insurance provider) on the loan and the WCDA program requirements as follows:
- The home must be the primary residence of the buyer.
- The buyer may not have owned a home in the past three years.
- Current total annual family income of the buyer(s) may not exceed the income limit in effect at the time of assumption
- Purchase price may not exceed the purchase price limitation in effect at the time of the assumption.
Contact WCDA to find out more on the assumability of your loan by calling 307-265-0603.
FHA insured mortgages originated on or after December 1, 1986 require that the buyer go through a credit qualifying process. (Fee: $550)
Rural Development requires a buyer to credit qualify for the assumption, however the original mortgagor is never released of liability. (Rural Development Guarantee Fee: One percent of the principal balance and a processing fee of $250)
VA requires a buyer to credit qualify for the assumption to release the seller of liability. (Fee: One percent of the principal balance and a WCDA processing fee of $250). Divorce situations on VA loans are handled on a case-by-case basis, please contact our office for specifics. These require direct approval from VA.
Primary mortgage insurance - Insurers require credit approval for all buyers on assumptions. (Assumption processing fee could be up to 1% of loan balance)