Cash purchase, adding person to title who will take out loan
My husband and I just purchased a home for cash (because it allowed us to get the best price) in our Rental Properties LLC name. We would like to add our daughter to the title during the closing process, and then have her take out a loan to pay us for the home so she can live it. She is a first time home buyer, and we would like her to build her credit and own equity in the home. She has a great credit rating and has already qualified for a loan. Is this possible, and if so, what is the best loan strategy?
Most Popular Reply
Sell the property to her if she qualifies for a purchase money mortgage.
If she's on title she would be refinancing and subject to different guidelines.
If you really want to help her out you can gift some equity... I'm sure some lenders on here will provide further guidance.
- Tom Gimer
