How should I go about purchasing my gram’s house? Mortgage? Home Equity? FHA? It is in an estate of my dad.?

Posted on Oct 23, 2012 in FHA Information

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Question by crave132: How should I go about purchasing my gram’s house? Mortgage? Home Equity? FHA? It is in an estate of my dad.?
Ok so here is the situation. My gram died over a year ago and her house has been sitting in an estate that my dad and his 3 siblings are in charge of. He has been holding up the estate so I can get the house, more about but I have to save up money first. I have the money saved up now, this just need to see about what my best method is for getting the house? Regular mortgage rates at local banks are 5% for 30 years and up. The house was appraised at 72000 and I am getting it for 60000, 15000 for my dad and each of his 3 sibling divided equally. My question is should I get the house deeded to me for $ 1 to avoid having to pay all the closing costs and do it as a home equity loan? Is there somewhere better to get a mortgage than a local bank? None of the big banks will do FHA/government loans. Please tell me the best way to go about getting the house in my name, and getting my aunts and uncles their money.
I have already been qualified for the loan, but if I do a home equity I wouldnt have to pay closing costs. Yes i know what a home equity loan is, I used to work as a credit analyst at a bank. There is no money owed on the house, and if it were in my name I would have all the equity to take out. The only reason I need money is because my aunts and uncles want their share for the house, and they want it soon. I have 5000 saved up, which is 5% down plus closing costs. I just want to know if there are any other loopholes besides having the house deeded to me for $ 1, which is not fraud and is legal. Thanks for the answers so far, but you havent told me anything I dont already know.

Best answer:

Answer by Greg K
There are a number of ways to do this, but it’s all about the level of trust between the parties.

First off, the purchaser needs to be someone that can get a loan. If that is you, fine, but if not, you need to figure out who can meet the lenders requirements. What mortgage products are available to you are predicated on the creditworthiness of the borrower. A mortgage broker may be of real assistance to you in figuring this out.

Closing costs vary with the mortgage product. You will need to figure out the nuances of closing costs as you decide your mortgage.

Finally there is the question of title. Assuming you purchase the house, the title is now in your name. It sounds like the house is already in a trust for the estate. Transferring the beneficiary name on the trust may be the easiest thing to do. And it doesn’t involve much money at all.

Nothing needs to change until you sell the house. If the trust owns the house, the trust gets the money. You need to look at the trust documents to understand what happens to the money in the trust.

Good Luck

Know better? Leave your own answer in the comments!

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3 Comments

  1. Skip the fraud, you and dad would both end up in prison. You have to have the real sales price on the deed.

    Your local bank is your best bet.

  2. A home equity loan is a loan on a home you already own that’s worth more than you owe on it, so that’s not an option for you. And FHA loan is one form of mortgage. You’d likely need 20% plus closing costs to get a regular mortgage from your bank – do you have around $ 17,000 saved up?

  3. Have your Dad and the siblings create an OWNER FINANCING NOTE on the property. You give them the good faith deposit of $ 5,000.00. After about 3-6 months depnding on the market equity on the house they can sell the note for CASH and divey up the proceeds at the note closing.
    I can help you with selling the note.
    Hi
    Know anyone that has a Real Estate Note too sell or have one yourself?
    Please go to the web site and fill out the online form.
    The information is just about the note and no real personal information about you accept your name.
    Just click on the left side where it say’s sell your note.
    This information will get back to me and I can begin processing your note.
    The sooner I get the information the sooner I can get back to you with an offer on your note.
    There’s also more information (FAQ) about the process of selling your note on the website please feel free to read it.
    I look forward to helping you sell your note and getting cash for you now.
    Thank you,
    Kevin Daubner
    6128 Roberta Dr
    Englewood FL 34224
    (941)915-8891
    (727)439-1892
    http://www.cash4cashflows.com/kdaubner