Thank you in advance for any advice!
I have a family member that would like to give me their home, with their equity, and would like for me to take over their mortgage. I have never done something like this before and I am unsure on how to proceed.
My plan was to speak with the lender and a title company and see what needs to be done, but when I spoke to the title company they told me that it was not possible to do this. I was told that I would need to buy the house from them with my own loan or qualify with the current lender and get a loan from them.
My family member is willing to keep the loan in their name and guarantee the loan, but have me pay it. Would it be possible to have them add me to the deed or maybe place it in the name of an LLC that I own? I plan to use the home as a rental property and pay the loan with the rental income.
I guess I was wondering if this is something that would be possible. I would need to update the home and make some repairs. While I completely trust this family member, I would feel more comfortable with the home in my name. Thank you again for any advice you can offer!
I'd it's an FHA or a va loan, it Is assumable, you qualify for it like a normal loan, but the previous owner is released. The other option you mentioned is a Sunject To purchase. There is a small possibility the lender will call the loan due if/when they find out about the transfer. Usually when you change the insurance into your name is what alerts them.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.