Posted on: 01st Oct, 2010 08:31 am
My mom wants to sell her house to me with gift of equity, I have no idea how this works..so please help out!
Her house is valued at $160,000, she owes $75,000 on the house. Do I go to the bank and get a loan of $75,000? or I actually buy the house from her at $160,000?
How does gift of equity work in this situation? Please help, I am clueless!! I'm in Florida by the way.
Thanks a lot for your help!!
Her house is valued at $160,000, she owes $75,000 on the house. Do I go to the bank and get a loan of $75,000? or I actually buy the house from her at $160,000?
How does gift of equity work in this situation? Please help, I am clueless!! I'm in Florida by the way.
Thanks a lot for your help!!
First, you have to know how much she wants to gift to you. Is she gifting the entire difference between the 160k and the 75k? If so, I would do this..
Have her add you to the deed. Then, you refinance the property on your own and in your name only.
[External links deleted as per forum rules. Thanks.]
Have her add you to the deed. Then, you refinance the property on your own and in your name only.
[External links deleted as per forum rules. Thanks.]