Posted on: 29th Jan, 2008 07:40 am
My husband and I are buying my parents house (they are buying a new home) to use as a rental property. My dad wants to maintain 25% ownership of the house. How would we go about securing a mortgage under these terms?
it may be better for you to seek advice from a real estate attorney on this question so you are legally safe.
even though we may have an answer to this question it may be bound by state laws we are not aware of.
in theory i will give you my answer's though.
#1 his mortgage may be assumable. check on that. then see if you can assume it and be added to the deed. some sort of legal document could be prepared, filed, and recorded addressing the % of ownership.
#2 he could add you to the deed and you could attempt to refinance the home into your names. it may take you up to 12 months of being on the deed before a mortgage lender will do this. then the document addressing ownership %.
3) purchase the home from him and add him back to the deed. then the document addressing ownership%.
this is just a couple of idea's. hire an attorney! i hope i helped you on the mortgage lending side of it though. some lenders may have clauses in their mortgage that may prevent all of the above too.
even though we may have an answer to this question it may be bound by state laws we are not aware of.
in theory i will give you my answer's though.
#1 his mortgage may be assumable. check on that. then see if you can assume it and be added to the deed. some sort of legal document could be prepared, filed, and recorded addressing the % of ownership.
#2 he could add you to the deed and you could attempt to refinance the home into your names. it may take you up to 12 months of being on the deed before a mortgage lender will do this. then the document addressing ownership %.
3) purchase the home from him and add him back to the deed. then the document addressing ownership%.
this is just a couple of idea's. hire an attorney! i hope i helped you on the mortgage lending side of it though. some lenders may have clauses in their mortgage that may prevent all of the above too.
well put, greg. i have to say i concur thoroughly with the suggestion that iooo get legal representation.
it would also seem to me that suggestion #3 may be the best solution.
it would also seem to me that suggestion #3 may be the best solution.
