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 sal
Joined: 20 Apr 2008
Posts: 2
2.09 Dollars($)
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 Posted: Sun Apr 20, 2008 10:37 am Post subject: Would like to buy property for parents in San Francisco |
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Hi,
My wife and I would like to buy a condo/apt for my parents in San Francisco. We will pay the downpayment and most of the mortgage, but we would like to have it jointly owned by all 4 parties for right-of-surviorship, should something happen to us.
a) can my wife and I claim the mortgage deducation on our taxes?
b) how would a) impact our ability to buy a house for ourselves in 2-3 years?
c) likely cost of the property will be less than the FHA max of $730,000. What does FHA take for downpayment? We've got FICO of 770 and 800 and our annual gross income is roughly $170,000, but we've been working ourselves out of debt and are almost clear, therefore can't afford a significant downpayment.
Thanks! |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 1346
Location: bloomfield, ct
45.00 Dollars($)
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| Posted: Sun Apr 20, 2008 11:14 am Post subject: |
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the standard for fha financing is 3% down payment. is it your intention to claim this property as a second home? there may be restrictions on your ability to do so - check with your lender.
as for interest and tax deductibility - since your plan is to be owners and mortgagors, i'm sure your tax advisor would tell you that you can claim those deductions.
as for the impact on your own purchase down the road - yes, it will have an impact; how much of an impact is hard to say...depends on your credit standing at that time, your income at that time, your monthly obligation on this property, your cash availability at that time and your other debt (if any) at that time. this is much too much of an open-ended question to give you a precise answer.
_________________
George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-286-0444 |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 715
Location: OHIO
130.36 Dollars($)
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| Posted: Tue Apr 22, 2008 5:28 am Post subject: RE: deduct interest on taxes and fha down payment |
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Hi Sal,
I must say that you have very good credit scores. Hardly get to such figures these days! I think you're looking for FHA loans and some kind of down payment assistance. There are plenty of non-profit organizations offering such down payment. The AmeriDream is one such organization.
You can also use gifts from your friends and relatives as the source of down payment. Since you're in SanFrancisco, you can apply for down payment programs at CAL Housing Finance Agency too!
| Quote: | | likely cost of the property will be less than the FHA max of $730,000 |
You mean the FHA maximum limit in SanFrancisco is $730,000 and your home value is lower than that. So, there are chances of getting such a loan amount.
| Quote: | | can my wife and I claim the mortgage deducation on our taxes? |
Do you itemize your deductions? If yes, then you will be able to deduct the interest on your taxes. Know when to deduct interest .
Regards,
Jessica.
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Home buying made simple with Community booklet |
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sal
Joined: 20 Apr 2008
Posts: 2
2.09 Dollars($)
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| Posted: Tue Apr 22, 2008 9:31 am Post subject: |
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Thanks for the replies. They were very helpful.
I checked out the CAL Housing Finance Agency which gave me a list of banks to contact about an FHA loan. It looks like we may not qualify for a CAL HFA loan because we don't intend to live in the place -- it's for our parents to live in. In any case I'll ask the loan officer what the alternatives are. |
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helping_user
Joined: 31 Mar 2006
Posts: 800
Location: Hawaii
148.82 Dollars($)
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| Posted: Wed Apr 23, 2008 12:37 am Post subject: RE: fha lenders |
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Hi Sal,
It's good that you got a list of banks from the CALHFA.
| Quote: | | It looks like we may not qualify for a CAL HFA loan |
Which type of loan are you talking about here? and if you wish to have the loan and property in your name, then you and not your parents will have to qualify.
If you wish to know about the alternatives to an FHA loan, feel free to seek free consultation with the lenders/loan officers/brokers in this community who are always there to help people with the right mortgage advice to suit their needs.
Thanks. |
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