Are conventional mortgage assumable at 85% LTV?

Conventional loans are not assumable. You would have to sell it to them, and they would need to fully qualify and they would need at least 5% of their own money. Your 15% equity can be a gift to them, so add the 5% down, and they would be at 80% Loan to Value.. and at 80% LTV, no mortgage insurance.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Conventional loans do NOT offer any assumable options. An alternative option is a "gift of equity", and or them simply buying it on their own. Contact a loan mortgage broker in your area for options based on your exact situation.

As others have suggested, a gift of your equity + some down payment from them is a great solution. If they currently own a home and want to retain it this will complicate things a bit. Either way, use this forum to find a local mortgage banker and they will know the questions to ask you. Good luck!

For any assumption, you would need to refer to your original mortgage and/or note to see any lender specifics that may be noted for a loan assumption. I would doubt the loan you have is assumable, so you may need to sell the home to them or if your lender is okay with it, you may be able to add them to your deed and then they can refinance you off of title and have the mortgage in just their names. Discuss this with your mortgage professional, lender, and/or a real estate attorney!

If it is not possible for them to qualify for their own loan at this time, perhaps you are willing to have them pay the mortgage payments directly to you and you in turn still pay the mortgage company? If you are in turn trying to buy another property you wish to qualify for then it is understandable you may need to not have this mortgage payment, including property tax and insurance included in your qualifying debt to income ratio. Perhaps, in that circumstance, you could work out a rental agreement with them to make the payments to you until such time they can qualify for a loan and purchase the house from you.