best way to buy a home from Parent

jbw6502 · Joined: 18 Aug 2008 Posts: 2 1.45 Dollars($)

My Mother wants to sell her house last appraised at $165,000 to me for $110,000. She has an equity loan of approx $20,000. With no money down what would be the cheapest and fastest way to purchase this home.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello jbw .

Welcome to the forums.

I feel your mother cannot sell the property for $110,000 if she has only 20k equity. Has she informed the mortgage company that she is willing to sell the property to her son in less than what she owes to the mortgage company?

Guest 0.10 Dollars($)

I guess I should have been clearer. My mothers home is paid off except for a 20K home equity loan. So there is approx 145,000 equity in the home. I have seen property transfers for $1 in the paper, I guess for tax purposes. I wanted to know if she could sign house over to me and I could take out a home equity loan or get a regular mortgage to pay her off. How could we do this with her having a equity loan with lien on home. I am interested in the best way to buy this house with the least amount of money out of pocket and low closing fees.

ckalvesmaki · Posted: Tue Aug 19, 2008 7:14 am Post subject:

You will not be able to get a home equity loan or be able to do a cash out refi on a home that you have been quit claimed to title on....you used to be able to do that but for a conforming loan product that is no longer the case.

your best bet would be to purchase the home from her at market value and have her do a gift of equity for your down payment anc closing costs.which means you should only have the cost of the appraisal and possibly a pest inspection for out of pocket costs.....

She must be current on her mortgage and be willing to provide some information......but it is really a pretty straight forward transaction.....

jbw6502 · Joined: 18 Aug 2008 Posts: 2 1.45 Dollars($)

Thanks for the info.

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