Posted on: 12th Dec, 2012 11:02 pm
My situation is that my mom had to move out of this house about 5 1/2 years ago because of health reasons and now residing with my sister. Since then, I've moved into the house and have been paying her mortgage and utility bills. They have been still in her name. I've been paying both directly through my bank account. We've never drawn up lease, nor did we do receipts. I want to purchase this house and now in the process of upping my credit score to qualify. My mother also wants the house out of her name and willing to sell to me what's left of the home loan. The amount left on the loan is approximately half of the original loan. Also, the house is not in good shape, so it'll have to be renovated. I'm hoping to get a home loan and renovation loan through the FHA. Should we draw up receipts for the past 5 1/2 years, or should showing payments for both the mortgage and utilities through my bank account suffice?
Hi Guest!
Welcome to forums!
Drawing up receipts may be a good option but it will be better if you could get in touch with the local lenders and check out their opinion in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Drawing up receipts may be a good option but it will be better if you could get in touch with the local lenders and check out their opinion in this regard.
Feel free to ask if you've further queries.
Sussane
How much is the house worth and what is she willing to settle it for? Also, do you have a middle credit score above 620 and 3.5% or are requiring a gift of equity? Do you have 12 months of canceled checks for the mortgage payments?
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You talk with the lender. If the lender is satisfied with your bank records, then that is fine. Otherwise, you may have to get those receipts for further processing.
Here I want to add a couple of points. To get qualified for an FHA loan, you will have to make a down payment of 3.5%. You should also have a credit score of at least 620.