FHA has them. And some conventional loans have them. Assumable loans have been dusted off and are once again being offered to borrowers, according to Inside Real Estate News. Back in the early '80s, when interest rates hovered around 16%, assumable loans were almost a must-have to close on a home. As incredible as it seems now, many folks didn't even need to qualify for an assumable loan — and many contracts included a provision that the interest rate could increase.

Obviously, neither scenario is an option in today's lending environment. And today, there's usually a transfer fee the buyer needs to spring for, to assume a loan. But it's a great hedge against higher interest rates. It's also a good bet that homebuilders' buyers can command a premium when selling their homes with an assumable loan — and add thousands of dollars to their bank accounts, as a result. Read more...