Updated almost 8 years ago on . Most recent reply
Buying your flipped home
Long story short a family member is interested in buying one of the homes I will flip through a HML. My name will also be on the mortgage once they purchase it through a conventional loan. If I did that would that interfere with my profit I made after the purchase? Or since my name is on the mortgage would I have to do a cash out refi? Keeping in mind that they are buying the house, and their credit and income will be ran, my name is just on the mortgage along with theirs.
I hope you guys understand my question. To sum it up I just want to know is it possible to sell the house you flipped, and have your name on the mortgage along with person you sold it too without interfering with the profit?
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Okay, so I think you are confused about a few things (or maybe I am). So, let's try and sort it out.
You did a rehab with a HML. But you can't qualify by yourself for the refinance to a conventional loan. Does that sum it up?
A few things to know.... the interest rate is figured by the lowest credit score. So if you have terrible credit, you could be messing it up for the other person to get a better rate. Also, if it is REALLY bad, you could be jeopardizing their ability altogether.
Also, the cash flow has NOTHING to do with your credit. Cash flow is reported on your TAXES. So that when lenders go to qualify you for another loan or purchase, they will be able to figure that income into your qualifications. So, TAXES not credit.
What confuses me is that you stated you are "selling" it to a family member, but will still be on the loan (more probably the title), and will still collect the cash flow. So, that wouldn't really be a sale at that point.