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Can I have my mom buy a house and then add my name to the ti

Posted on: 14th Nov, 2007 01:56 am
If not how can I have Mom help me buy this house with my 580 credit?

I know I can rent to own-but I also want the tax deductible benes of owning a home.

If I rent to own from my mom, its she who has the tax deduction, not me correct? So how can I get this done (or can I?)?
Hi Pixxie,

Welcome to this forum.

"Can I have my mom buy a house and then add my name to the ti"
Your mother can quitclaim to add your name in the title. You need to notarize the deed and record it in your county recorder office to make the deed valid. Quitclaim does not transfer mortgage to the granteeā€™s name. So if there is mortgage on the property, you should refinance it to transfer the mortgage to your name. Thus you can make your mother free from any obligation to pay the mortgage.

"If I rent to own from my mom, its she who has the tax deduction, not me correct? So how can I get this done (or can I?)?"
Yes if you rent to own from your mom, you will not enjoy the tax deduction benefits. So if you can be the owner of the home and pay the mortgage payments if there is any, then you can enjoy the tax deduction benefits. So consult with your mother and see whether she agrees to quitclaim to you or not. If she agrees, you should refinance to make her free from the mortgage obligations.

Hope this will help you.

Feel free to ask the community if you have any further questions.

Thanks,
Larry
Posted on: 14th Nov, 2007 03:08 am
hello pixxie,

i agree with larry. your mom can sign a quit claim to add you to the title of the property but that in no way will help you to get the tax benefits.

you should have the mortgage in your name. for that, you need to either refinance the loan in your name or do a novation with your lender's consent.

has your mom already bought the house? if not, why don't you yourself think of buying?

with 580 credit score, a high interest rate might be offered to you but you can always try for fha mortgage which is not a score driven program.
Posted on: 14th Nov, 2007 03:50 am
Hi Pixxie,

Thank you for visiting the forum.

Jenkin7 and the others offered great advice. I would also like to add that your mother could possbily be a non-occupant co-borrower on the FHA loan which may help for qualification purposes.
Posted on: 14th Nov, 2007 05:42 am
michelle has the right of it
you can always be added to the title of the home by the owner of that home that is not a problem. However all it does is give you ownership interest in the home, nothing else.
If you want to have tax benefits from owning a home you will need to be on the mortgage.
If your score is 580 then an Fha loan might be a solution if your mom is willing to help out and come on as a nonoccupiing borrower. However your credit should be clean in the last 12 month and you need to have a 2 yr work history to start qualifing for FHA.
Posted on: 14th Nov, 2007 05:56 am
I had a feeling quit claim wasn't going to work for me. I do want to be on the loan, but the last 12 months we have had some credit issues (medical).

We have a minor child with a disability (so only one of us can work-no day care program will accept our child) are there any programs/grants out there to help? Teacher's salary with 3 kids (1 special needs) and 2 adults (not including my mom). So she would be a non-occupying buyer.

I guess I'm just spinning my wheels here and should have her buy the house (its perfect for our needs) and then buy from her in 12 months? Doesn't that negatively impact her credit if she sells so soon?

lots of questions sorry so many...
Posted on: 14th Nov, 2007 09:27 am
we were told not to touch the medical issues on our credit until we knew if we were going to buy now or later. If later go ahead and pay; but if now don't touch it because it would lower the credit rating (??) because it wouldn't reflect a positive activity on the account only that there was activity. Is this true?
Posted on: 14th Nov, 2007 09:30 am
Pixie,
Welcome to the forums!

Ok, So we still don't know what type of credit you have. Medical can be excused. It doesn't count the same as regular collections. What are the negative items in your credit specifically? When did they occur? Do you have any judgements or tax liens?

It will not hurt your mothers credit to sell it to you in 12 months if that seems like the best option.

Here is what you do. You are going to need at least 3 other bills besides your rent paid on time for the next 12 months(or the past 12 mo if you have) if you want to qualify for FHA. And you can't have any new collections or judgements or liens (except medical but you have to prove it).

1. Let your mother buy the house.
2. Make up a land contract where you buy the house from her.
3. Make all bill payments and payments to your mother for the house
a. ON TIME
b. WITH A CHECK FROM YOUR CHECKING ACCOUNT
4. Get together all proof of your childs medical condition that you have. Be prepared to answer personal and often insulting questions from the underwriter at the bank. Don't take any of it personally as they are just trying to do their job and they won't mean anything by it. Don't get discouraged if the subject comes up a lot and you have to do a lot of explaining about it.
5. Don't let your bank account get NSF or insufficient funds fees. Try to keep a balance (not mandatory but everything helps)
6. Don't get any credit cards, auto loans or any new credit until you buy the house.

Start with these things and you should be all right. One thing also is that if there is any equity your mother can gift it to you and you can use it as a down payment. This will help you qualify for a better deal.
Posted on: 14th Nov, 2007 10:05 am
I'd just like to thank everyone for all of the advice. It gives us lots to think about and discuss.

I am VERY glad I stumbled onto this forum. Hopefully the next time you all hear from me I will be on my way to owning a home....

Thanks again!

Pixxie
Posted on: 14th Nov, 2007 03:49 pm
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