Posted on: 29th Sep, 2010 09:23 pm
My father owns several properties free and clear. He has agreed to take out a loan against the one I am living in. He is 88 yrs old in good health. I will make the payments on the loan. The loan is for approx $100,000 to buy retirement time. It will make about a $2200 difference in my retirement pay.
Should I quit claim myself on to the title as I would like to take advantage of the mortgage deduction.
Could he qualify on his own. He has excellent credit.
What impact if any will quit claiming myself on to the property have on property tax. The property was originally purchased in 1965 (pre prop 13) and has low taxes. Thanks for your advice.
Should I quit claim myself on to the title as I would like to take advantage of the mortgage deduction.
Could he qualify on his own. He has excellent credit.
What impact if any will quit claiming myself on to the property have on property tax. The property was originally purchased in 1965 (pre prop 13) and has low taxes. Thanks for your advice.
Welcome caguy,
As your father has excellent credit score, he will be able to take out a mortgage. However, the lender will want him to show some kind of income when he applies for a home loan. Unless he has income, he won't be able to get a mortgage. Moreover, unless your name is mentioned on the property deed, you won't be able to qualify for tax deductions on mortgage interest payments. If you add your name to the property, it will be assessed for property tax purpose and there might be slight changes in property taxes.
As your father has excellent credit score, he will be able to take out a mortgage. However, the lender will want him to show some kind of income when he applies for a home loan. Unless he has income, he won't be able to get a mortgage. Moreover, unless your name is mentioned on the property deed, you won't be able to qualify for tax deductions on mortgage interest payments. If you add your name to the property, it will be assessed for property tax purpose and there might be slight changes in property taxes.
the only way to write of the mortgage interest is by adding yourself to the mortgage. he would have to sign a quit claim and add you to the deed and then refinance with you as a cosignor.
