Sellers Can Use Their FHA, VA Loans as Marketing Tool

According to The New York Times, it appears that those with a mortgage insured by the Federal Housing Administration or the Department of Veteran Affairs should use their loan terms as a "marketing tool."

Rather than taking out a new mortgage, the buyer of a home financed with the loans listed above may take over the seller's loans under the same terms.

“You could now have a seller saying, ‘I have a great house to sell you and a great mortgage to go with it, which is better than my neighbor, who only has a great house,’" Marc Israel, an executive vice president of Kensington Vanguard National Land Services and a real estate lawyer, told The New York Times. “It’s a very clever idea."

FHA loans require that borrows pay for mortgage insurance for the life of the loan.