Posted on: 14th Mar, 2007 09:52 pm
Due to my credit, my grandparents are purchasing a house that they and my wife and I will live in. I will be making the payments and covering all expenses, were just utilizing there perfect credit instead of mine. I was told that once the closing goes through and we have the house, that I can be quit claimed on the deed and be able to take all the normal owner deductions when tax time comes for the expenses that I pay. And this will also give me an interest in the house in case something happens to them before I can purchase it from them. It this true or just a a case of bad information?
Huffmanmm,
Is the loan in your name? Or, have your grandparents cosigned on the mortgage?
Is the loan in your name? Or, have your grandparents cosigned on the mortgage?
hi huffmanmm,
welcome to our forums.
you can claim for tax deductions only if your name is on the title to the property which is your primary residence and you are paying monthly installments on the mortgage taken against your residence.
in your situation, once your grandparents sign over the quit claim deed, you will become the owners. but the loan will still be in your grandparents' name.
you can claim the deductions if you can get the loan transferred in your name. but i guess that your lender or mortgage company may not allow for it as your credit isn't a perfect one.
however, if your name is on the loan with the grandparents having cosigned, then once you transfer title in your name, you can claim for deductions.
thanks,
caron.
welcome to our forums.
you can claim for tax deductions only if your name is on the title to the property which is your primary residence and you are paying monthly installments on the mortgage taken against your residence.
in your situation, once your grandparents sign over the quit claim deed, you will become the owners. but the loan will still be in your grandparents' name.
you can claim the deductions if you can get the loan transferred in your name. but i guess that your lender or mortgage company may not allow for it as your credit isn't a perfect one.
however, if your name is on the loan with the grandparents having cosigned, then once you transfer title in your name, you can claim for deductions.
thanks,
caron.
"And this will also give me an interest in the house in case something happens to them before I can purchase it from them."
If they quit claim the house full ownership will get transferred to you and you will not have to purchase it again.
As Caron said, before you request your grandparents to give you the ownership talk with the lender about your plans and inquire whether he will allow you to take over the mortgage with your current credit rating.
Miller
If they quit claim the house full ownership will get transferred to you and you will not have to purchase it again.
As Caron said, before you request your grandparents to give you the ownership talk with the lender about your plans and inquire whether he will allow you to take over the mortgage with your current credit rating.
Miller