Posted on: 20th Jan, 2010 10:45 am
My parents purchased my home for us back in 1999, we have made all payments through our bank account. My father passed away and my Mother now wants to give us the house. She already did a quit claim, we haven't filled it yet with the county. The amount owed is only $73,000 and the value is $130,00. The loan is completely assumable at 5.25%. We are self employed and have no income on paper, our credit is fair to good. Can we assume the loan without making a down payment. Our Mom does not want to make any money off the house. Thanks.
Welcome mbarbie,
It will be difficult for you to qualify for a loan if you do not offer a down payment. However, as you've equity in the property, I would suggest you to speak to your lender and check out if he can help you in assuming the loan without any down payment.
It will be difficult for you to qualify for a loan if you do not offer a down payment. However, as you've equity in the property, I would suggest you to speak to your lender and check out if he can help you in assuming the loan without any down payment.
>>We are self employed and have no income on paper
That's going to keep you from getting a regular mortgage - Lenders are too tight with credit right now, especially with fair to good credit. You're going to need excellent credit if you're not able to show income.
Your option is to get a hard money loan, which should be possible because your LTV is only 56. But hard money means high loan fees and a high interest rate, so it may make more sense for Mom to keep her current mortgage and leave things be.
There used to be a lot of mortgage programs available to somebody like you, but not anymore. You may want to consider showing income on your Schedule C for 2 years. That'll enable you to obtain a mortgage and buy the house.
That's going to keep you from getting a regular mortgage - Lenders are too tight with credit right now, especially with fair to good credit. You're going to need excellent credit if you're not able to show income.
Your option is to get a hard money loan, which should be possible because your LTV is only 56. But hard money means high loan fees and a high interest rate, so it may make more sense for Mom to keep her current mortgage and leave things be.
There used to be a lot of mortgage programs available to somebody like you, but not anymore. You may want to consider showing income on your Schedule C for 2 years. That'll enable you to obtain a mortgage and buy the house.
I am a real estate agent in Michigan. I have sellers with a FHA assumable mortgage they have only had for 2 yrs. A potential buyer would like to purchase the home and we can see the benefit of less paperwork and money up front. I know what the steps are required with the bank. Is there a closing like a conventional purchase? Who is responsible to have the deed changed, title recorded, tax authority notified and any other needed changes made? Will I need to have a title company involved? Thanks Ruth
Welcome ruth,
As there is a buyer who will be buying the property, I think there will be a closing like a conventional purchase. The seller can take the responsibility of of changing the deed, record title, taxes etc. You can also take the help of a title company.
As there is a buyer who will be buying the property, I think there will be a closing like a conventional purchase. The seller can take the responsibility of of changing the deed, record title, taxes etc. You can also take the help of a title company.