Posted on: 01st Dec, 2013 11:50 pm
My daughter wants to buy a house. Will we be able to sell off our house to her where she will be able to make note payments and we will deduct that from the agreed price unless she is able to get a loan?
If you sell off the property to your daughter now and transfer it to her, the lender may call the loan due as soon as he comes to know about it. Or else, the lender may ask her to immediately refinance the loan. Before you take any step in this regard, you should consider these things.
Can your daughter afford a mortgage now?
If she can, sell it to her now with a gift of equity and contribute money from the sale toward closing costs.
If the mortgage will be an FHA mortgage, the gift of equity can be 3.50%.
If the gift of equity can be 20%, do a conventional loan.
She does not need any of her own money to buy the house now if you can do one of the two above. She does need income and credit score to qualify for the mortgage.
If she makes payments to you, you cannot deduct that from the purchase price. The purchase price is the purchase price.
If she can, sell it to her now with a gift of equity and contribute money from the sale toward closing costs.
If the mortgage will be an FHA mortgage, the gift of equity can be 3.50%.
If the gift of equity can be 20%, do a conventional loan.
She does not need any of her own money to buy the house now if you can do one of the two above. She does need income and credit score to qualify for the mortgage.
If she makes payments to you, you cannot deduct that from the purchase price. The purchase price is the purchase price.
