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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12346
Location: bloomfield, ct
53.01 Dollars($)
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i don't see how you can get a no-closing-cost owner financed deal. you expect the seller to pay your legal costs, your appraisal fee (if you get one), your recording fees, etc? that's pretty far-fetched.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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jane hoskins
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Post subject: owner financing |
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| Is it customary to get a down payment also, with the owner financing? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12346
Location: bloomfield, ct
53.01 Dollars($)
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down payment cannot be provided by a seller.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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chuck mineo
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Post subject: Traditional mortgage after owner financing |
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| If I am buying a $400,000 home with 100% owner financing and want to get a traditional mortgage after a few years, would I be able, with most lenders, to get an 80% mortgage loan if the seller continues to finance the other 20%? In other words, can that 20% owner financing, if subordinate to the mortgage, serve as the necessary down payment? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12346
Location: bloomfield, ct
53.01 Dollars($)
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not at all likely anymore. those 80/20 deals proliferated several years ago, when everyone foolishly thought that home values would continue to escalate unabated. with the crash of the real estate market and the recognition that 80/20 deals brought people into the mix who had no vesting in their properties, those deals went the way of t-rex and his ilk.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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rcarval
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Post subject: seller to offer home equity as down payment??? |
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| im buying my home from my fiance....i don't have the money for a down payment or closing costs, my lender said my fiance can use his equity in the home to pay the down payment and closing costs......how does that work, does anyone know? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12346
Location: bloomfield, ct
53.01 Dollars($)
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your fiance can give you a gift of equity, and that will stand as your down payment. further, he can provide you with closing costs assistance of as much as 6% of the purchase price (maximum), and that would take care of all of your financial needs as far as the purchase is concerned.
hopefully, he has sufficient equity in the home to allow for all of this to take place. it would appear so inasmuch as the lender has suggested it.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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rcarval
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Post subject: gift of equity |
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| how exactly does a gift of equity work? is that something he has to pay back or pay taxes on? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12346
Location: bloomfield, ct
53.01 Dollars($)
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i've seen many posts discussing taxation on gifts, but i'm not a tax advisor and i've never researched anything in that regard. if you have a tax advisor, check with that person; if you don't you can find out from the irs directly as to what taxation is required with gifts of that sort.
as for how a gift of equity works...if the home is worth $200K, and you want to borrow 80% ($160K), he can "gift" you that $40K that you need for down payment. it calls for a "gift letter" that your lender can provide to you. he can also pay your closing costs for you up to 6% of the price, if you need that much.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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rcarval
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Post subject: gift of equity |
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| wont work, he's my fiance, we are not married yet, something my retarded loan consultant forgot. |
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rcarval
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Post subject: gift of equity |
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| does a domesic partner or fiance quailify for a gift of equity? I have checked out a few web sites that say yes??? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12346
Location: bloomfield, ct
53.01 Dollars($)
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what kind of loan consultant are you working with?
i know of no reason why two people who are engaged to be married wouldn't be able to transfer real estate one to the other by way of a gift of equity. an ordinary gift of funds has been allowable for as long as my memory goes back, and the only difference between the two (funds/equity) is the appellations we give them.
find a consultant who knows the rules is my best analysis of your situation.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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Glenda
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Post subject: What about closing? |
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| If I do an owner financing on a piece of property that I own, how do I do a closing? |
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Hi Glenda!
Welcome to forums!
You will have to contact an attorney who will help you in drafting an agreement mentioning the terms and conditions of owner financing. During the closing you and the buyer will have to sign the agreement. This will make the owner financing legal and both of you will have a proof of the financing.
Feel free to ask if you've further queries.
Sussane |
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rockcop
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Post subject: losing an owner financed home |
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If I were to buy a home through owner financing, does the owner (acting as the lender) have the ability to take loans out on the home even though I've "purchased" it or can he sell the home to someone else and transfer his authority as a lender to someone else.
My main concern is if there is anyway I could lose my home out from under my nose due to the "lender" being able to make the abovementioned decisions? If he can take loans out on the home, what if he defaults on his loans? |
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