Posted on: 15th Apr, 2007 05:07 pm
There is a house that I am interested in and my aunt and uncle has offerd to put the down on the house. They are worried about me get financing on the house because my credit is less the perfact. They are suggesting that they purchase the house and quit claim it to me. Is this a reasonable idea? Will I be paying mortgage payments that is in thier name? What is the point of quit claiming it if I am going to have to refiance the house in my name to assume ownership anyway?
hi lilstar,
welcome to the forums.
yes, i believe it is a reasonable idea because what your aunt and uncle are planning to do is perhaps they'll purchase the house with a mortgage in their name and then quit claim or transfer it to you.
by signing on the quitclaim deed, they will perhaps be removing their names on the title and transferring it to your name. now, when they do so, their names will still be on the loan and you need not have to pay for the loan. only when you refinance, you will have to pay for the loan.
thanks,
sara
welcome to the forums.
yes, i believe it is a reasonable idea because what your aunt and uncle are planning to do is perhaps they'll purchase the house with a mortgage in their name and then quit claim or transfer it to you.
by signing on the quitclaim deed, they will perhaps be removing their names on the title and transferring it to your name. now, when they do so, their names will still be on the loan and you need not have to pay for the loan. only when you refinance, you will have to pay for the loan.
thanks,
sara
Lilstart
The purpose of the quit claim may be just to give you the ownership rights so that when you refinance, the title will be in your name. Otherwise, if you do not have your name on the loan but it appears on the title, then you need to get the title transferred in your name at the closing table when you refinance.
The purpose of the quit claim may be just to give you the ownership rights so that when you refinance, the title will be in your name. Otherwise, if you do not have your name on the loan but it appears on the title, then you need to get the title transferred in your name at the closing table when you refinance.
"They are suggesting that they purchase the house and quit claim it to me."
"What is the point of quit claiming it if I am going to have to refiance the house in my name to assume ownership anyway?"
After the house is purchased they will continue the mortgage for some time and when your credit score goes up reasonably so that you can qualify for the refinance, they will quit claim the house over to you.
They should not quit claim it you right now as you are not going to refinance the mortgage immediately, you need to wait for your credit to improve before approaching the mortgage company about refinance.
"What is the point of quit claiming it if I am going to have to refiance the house in my name to assume ownership anyway?"
After the house is purchased they will continue the mortgage for some time and when your credit score goes up reasonably so that you can qualify for the refinance, they will quit claim the house over to you.
They should not quit claim it you right now as you are not going to refinance the mortgage immediately, you need to wait for your credit to improve before approaching the mortgage company about refinance.