Posted on: 30th Nov, 2009 11:58 am
Hello - I purchased (financed) a home with a friend of mine back in Feb. 2007. Since then, my friend has become married and has moved out. I am getting married next year with my fiance who lives in the house with me. Currently, we have the house up for sale because we do not want to keep it as an investment property. My fiance and I have discussed staying in the home and buying my friend out. My question is can I refiance the home taking my friend off of the load and putting my fiance on the loan. How would I go about doing this? I have discussed with my friend and we have settled on an amount that I would pay him in cash. If there are any other options you can think of for this situation, I would like to hear them as well.
Thank you for your assistance.
Nick
Thank you for your assistance.
Nick
hi tha_pex,
by refinancing the loan, you would be able to remove your friend from the loan and add your fiance to the mortgage. however, your fiance should have the required credit score and income in order to include his/her name on the mortgage docs. there is another option to transfer the mortgage known as novation. however, you should note that lenders prefer refinance compared to a novation.
thanks
by refinancing the loan, you would be able to remove your friend from the loan and add your fiance to the mortgage. however, your fiance should have the required credit score and income in order to include his/her name on the mortgage docs. there is another option to transfer the mortgage known as novation. however, you should note that lenders prefer refinance compared to a novation.
thanks
Thanks jameshogg for the reply. I assume lenders prefer refinances because there is closing costs involved. Are there any lenders or programs you know of that will refinance for little to no closing cost? I am pretty sure my fiance will pass the credit and salary requirements to be on the loan.
Hi kappadoce,
It is true that lenders prefer refinancing because there are closing costs involved in it. However, I doubt that there are hardly any lenders or loan programs which you can get at little or no costs at the time of closing. It's good to know that your fiance will pass the credit and salary requirements. Thus, you would be able to refinance the loan.
Thanks
It is true that lenders prefer refinancing because there are closing costs involved in it. However, I doubt that there are hardly any lenders or loan programs which you can get at little or no costs at the time of closing. It's good to know that your fiance will pass the credit and salary requirements. Thus, you would be able to refinance the loan.
Thanks
There is not a lender in the United States that prefers refinancing because there are closing costs.
Lenders prefer refinancing becasue there are secondary market issues with changing title by any other means. Due to secondary market restrictions any other means may be prohibited.
Lenders prefer refinancing becasue there are secondary market issues with changing title by any other means. Due to secondary market restrictions any other means may be prohibited.
thank you john for a touch of sanity. not only is the title situation critical, but i have to think that novation is in dinosaur status. what lender would run that risk in 2009? i can't fathom it - refinancing is sensible, regardless of the costs that would be undertaken. as john noted, lenders are heavily involved in the secondary markets and cannot afford to have title issues raised.
OK - Thank you all for the replies. So I surmise that to accomplish what I would like, I need to get my fiance on the title of the loan first. Then seek refinancing options for the home, given that we both pass the credit/salary requirements.
Would my friend I originally bought the house with be removed from the title?
Thanks
Would my friend I originally bought the house with be removed from the title?
Thanks
You do not need to get your fiance on title first.
At closing, the other person is taken off title and your fiance is added to title.
Putting your fiance on title first actually triggers the due on sale clause if the lender finds out and if that occurs before you get the refinance, problems could occur if for some reason you can not get the refinance.
At closing, the other person is taken off title and your fiance is added to title.
Putting your fiance on title first actually triggers the due on sale clause if the lender finds out and if that occurs before you get the refinance, problems could occur if for some reason you can not get the refinance.
well put, john.