Loan options for SFH
Good afternoon everyone,
I’m looking to purchase my grandparents’ single family home by May 2020. When they passed away, the three siblings split it 3 ways. It was just assessed for $240k.
This house has been rented out for the last 12 years under market value. My parents are looking to buy out the other two beneficiaries and take a little of their portion out as well.
So rather than go for a $160k loan, they'll look for $180k (to get $20k in cash) and have $60k of equity still in the house. The goal is to transfer the house to my LLC once it is created this May.
Am I able to assume this loan under their current conditions and interest rate, or do they have to sell me the property and I have to go through the process of another loan? I’m thinking there would be a title exchange and my parents’ $180k of debt would be transferred to my name, with me taking over their current payments, etc.
Once I sell the house down the road, they would get the remainder of their $80k inheritance ($60k left..) and I would get the increased appreciation in equity.
I currently own a home in Hawaii and will look to create an LLC in my home state of MA, which is where I want to expand my business. With strong rental history and good credit, I would love to know what options I have with this kind of financing.
Thank you BP and I look forward to hearing from you.
- Ryan