Posted on: 02nd Apr, 2009 07:12 am
I am wanting to purchase my fathers home. I am wondering, to avoid a down payment, if my father was to ask 20% less than the appraised price.
Is this a do-able deal for most banks or mortage companies?
Is this a do-able deal for most banks or mortage companies?
indy, your dad can convey the property to you with the use of a gift of equity. all you would really need to borrow would be an amount sufficient to pay off his mortgage, if any, and any other liens that may exist. the purchase price would need to be high enough that your loan not exceed 80% of the value.