All Forum Posts by: Mia Law

@Mia Law what does the seller want for the property?

Yes, both smart and doable, @Mia Law. But do you know how you're going to come up with the upfront money? I may have some ideas.

@Mia Law

Also look into the option of gifted equity.  This is great when purchasing from a family member if they are willing to consider a discount.  For example if the house is worth 400K, but they are willing to sell it for 375k because they are avoiding having to pay 25k in agent fees, then the bank can consider the equity gap as a down payment. So the only money out of pocket is any closing costs that don't get worked into a new loan.

Hi @Mia Law, welcome to the BP Forum! Is your family member looking for a lot of cash upfront on the sale? If not, this sounds like you could set this up with seller financing where you pay your family member a certain amount at closing and then an agreed upon amount every month (like a mortgage payment). 

At this point you would be the owner and thus responsible for managing the property yourself or hiring a property manager to get the property rented (if it isn't already).

Then after an agreed upon period of time (probably after your collection falls off and your credit score improves), then you can refinance the loan with another lender (like a bank, credit union, or HML) and payoff your family member.