Assignments - Underwriting Fundamentals 101


If you don't already know, an assignment is when you agree to buy a property, and then you assign or sell the rights to to buy that property to someone else, whether that be an investor or homeowner.

Now, a lot of assignments happen mostly on new construction, but they can happen on a resale home as well.

Now, usually what happens is it is an investor that will buy a home for for what they believe to be a low price and then they'll charge a fee for a new buyer to take it over.

Now, we have some lenders that will account for that fee and they'll base the mortgage on the assignment purchase price plus the fee.

Providing an appraisal supports that value because the lenders, they do know that sometimes you can get some off market and really low priced deals so they're okay with it.

Some of the lenders, other lenders say nope, and they'll only work with you based on the agreed purchase price.

So normally you would have to pay those funds out of pocket. If you're using one of those lenders.

Talk to a Mortgage Professional

Naturally, you want to avoid paying those fees in order to reduce your total costs.

That is why we work with a variety of lenders.

That way, if your property qualifies, you can skip those fees and save money.

To learn about how we can do this, click the link below for a free strategy call and we can go over your options together.

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