Posted on: 28th Apr, 2009 07:40 pm
They owe approx $120K on their home that has been appraised at $300K. Their current interest rate is between 8-11%.
I have thought about purchasing their home for the payoff amount and at a better rate so they can "repay" me at at the lowered mortgage payment.
I purchased my first home a little over a year ago and my wife and I have excellent credit.
-What are the chances of this happening and what are the possible issues/benefits, etc?
Would a lender see this as low risk with the current purchase price vs. appraisal amount?
Thanks!
I have thought about purchasing their home for the payoff amount and at a better rate so they can "repay" me at at the lowered mortgage payment.
I purchased my first home a little over a year ago and my wife and I have excellent credit.
-What are the chances of this happening and what are the possible issues/benefits, etc?
Would a lender see this as low risk with the current purchase price vs. appraisal amount?
Thanks!
Hi Dbhirsh!
Welcome to forums!
Lenders generally do not offer a second loan to buy another property if you have already taken a loan to purchase a property. However, you have mentioned that you have excellent credit and I guess you are current on your mortgage payments. In that case, there is a chance that the lender may give you another loan to buy the property of your parents. Moreover, as the property has equity, getting a loan can be easier for you.
I would suggest you to speak to some of the lenders and check out the rates and terms they are offering you. This will help you in judging whether you will be able to afford the loan or not. This community also has a large number of lenders. You can speak to them and seek a no obligation free mortgage consultation. This consultation will help you in knowing whether you'll get a loan or not.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Lenders generally do not offer a second loan to buy another property if you have already taken a loan to purchase a property. However, you have mentioned that you have excellent credit and I guess you are current on your mortgage payments. In that case, there is a chance that the lender may give you another loan to buy the property of your parents. Moreover, as the property has equity, getting a loan can be easier for you.
I would suggest you to speak to some of the lenders and check out the rates and terms they are offering you. This will help you in judging whether you will be able to afford the loan or not. This community also has a large number of lenders. You can speak to them and seek a no obligation free mortgage consultation. This consultation will help you in knowing whether you'll get a loan or not.
Feel free to ask if you have further queries.
Sussane