Posted on: 01st Dec, 2007 04:14 pm
My mother is about to move out of the country for two years and I may move into her house. She is 65, and we've talked about her moving from the house into an apartment soon for convenience reasons. I, however, do not want to let the house out of the family, and would like to buy it at some point. She will need some cash from the equity in the house in order to buy her apartment.
So, we're looking for the most tax-efficient way for her to get cash, move to an apartment, while keeping the house in the family (with me). I am not a homeowner now, and am planning on buying something soon.
Multiple specific questions:
- If I move in now for the next two years while she is out of the country, is there a way for me to assume her mortgage payments, earning equity in the house and getting the tax break?
- If I "bought" the house outright, can we set any price for the sale? She doesn't need to maximize profit off of me.
- Is it advantageous for me to buy the apartment now, and then she lives there while I live in the house? Does that help us transfer or sell the house to me later on?
Thanks,
Josh
So, we're looking for the most tax-efficient way for her to get cash, move to an apartment, while keeping the house in the family (with me). I am not a homeowner now, and am planning on buying something soon.
Multiple specific questions:
- If I move in now for the next two years while she is out of the country, is there a way for me to assume her mortgage payments, earning equity in the house and getting the tax break?
- If I "bought" the house outright, can we set any price for the sale? She doesn't need to maximize profit off of me.
- Is it advantageous for me to buy the apartment now, and then she lives there while I live in the house? Does that help us transfer or sell the house to me later on?
Thanks,
Josh
hello jgreen,
i think it will be the best to refinance the mortgage in your name and at the same time transfer the ownership rights to you with the help of a quit claim. the house will remain with you and at the same time if you do a cash-out refinance, the extra cash that you receive will help you to pay for your mother's apartment.
i think it will be the best to refinance the mortgage in your name and at the same time transfer the ownership rights to you with the help of a quit claim. the house will remain with you and at the same time if you do a cash-out refinance, the extra cash that you receive will help you to pay for your mother's apartment.
Hi Jgreen,
Better if you go for the sash-out refinance and make your mother free from the loan obligation. Ask her to sign a quitclaim deed to transfer the property to you. The extra cash will be helpful to buy your mother's apartment.
Thanks,
Larry
Better if you go for the sash-out refinance and make your mother free from the loan obligation. Ask her to sign a quitclaim deed to transfer the property to you. The extra cash will be helpful to buy your mother's apartment.
Thanks,
Larry
My parents live in another state and are currently paying a very high mortgage for their rental home. (formerly grandparents home) They own their primary residence out right. I would like to help them out by purchasing my grandfather's home. (I currently own my home) The home is currently being rented and the renters would remain. What steps will best accomodate their financial need? If I can purchase the home, would i still have to go through all the steps as I did when purchasing my own home?
Hi Vicki
As far as I can understand your question, you will have to take the similar steps as you have taken while purchasing your property. But if you already have a mortgage, it will be difficult for you to get mortgage for another property. But if you can show the lender that your credit is good and that you have paid the existing mortgage debt regularly, the the lender can approve another mortgage.
If you are purchasing the property, you will have to use a warranty deed to transfer the property in your name. Then you can notarize and record the deed at the county recorder's office.
Thanks.
As far as I can understand your question, you will have to take the similar steps as you have taken while purchasing your property. But if you already have a mortgage, it will be difficult for you to get mortgage for another property. But if you can show the lender that your credit is good and that you have paid the existing mortgage debt regularly, the the lender can approve another mortgage.
If you are purchasing the property, you will have to use a warranty deed to transfer the property in your name. Then you can notarize and record the deed at the county recorder's office.
Thanks.