Home Buying in 15217>Question Details

buyer, Other/Just Looking in Pittsburgh, PA

Being gifted a house from a non relative, how does this work?

Asked by buyer, Pittsburgh, PA Wed Apr 18, 2012

I have a neighbor that will live the rest of their life out at a retirement home and wants to 'sell' us the house but at a very low price. The house is in disrepair and needs a lot of work. do we need realtors for this or how do we even begin? Also, if we would buy the house for a very low price do we ask for a higher mortgage amount to cover repairing the house?

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7
You should speak with a real estate attorney who can handle the transfer of the property. If you need a mortgage to purchase the home and repair it, you'll need to speak to a lender and about a 203K loan or if you already own a home and have enough equity in it, it may make more financial sense to get a Home Equity Line of Credit against your existing property to purchase and repair the home.

Good Luck.
0 votes Thank Flag Link Tue Jul 10, 2012
Hello Buyer,

If the house is in disrepair, there is a mortgage that will allow you to finance the rehab of the property. Go to my website ( below) and click on 203k loans at the bottom of the page. There is a great presentation on how they work.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
0 votes Thank Flag Link Tue Jul 10, 2012
I'm fairly new to trulia and just received an regarding this question. It appears that this question was asked back in April, but I'm interested to see how this worked out for you. It's an oppurtunity that should not be wasted whether you plan on using it for a residence or an investment - flip or rental. Have you been able to work out the details yet?
0 votes Thank Flag Link Tue Jul 10, 2012
My guess is it didn't work out
Flag Tue Jul 10, 2012
Before agreeing to buy the home, make sure the foundation and basic structure are solid. If the house is solid, then it is probably worth doing other repairs. However, if the basement block is cracked and pushed, there are corner wall cracks, and things are caving in everywhere, think twice. Check out PHFA's website for purchase and renovations. If the home is in a more suburban area, check out USDA Rural Development's purchase and repair programs. If you purchase without a Realtor, use an attorney and be sure to get a seller disclosure. Good luck!
0 votes Thank Flag Link Wed Apr 18, 2012
You need an FHA 203k loan which will allow you to buy the house and pay for fix ups. Be sure to set up a 6% seller assist in the agreement of sale.
I suggest using a Realtor or attorney to facilitate the transactoion. You will still need 3.5% downpayment to qualify for an FHA loan.

Call me and I will be happy to walk you through it.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960


Alan
0 votes Thank Flag Link Wed Apr 18, 2012
You can do this yourself. But for your protection, you should ask a real estate broker (some are Realtors) to help you oversee the transaction. You can ask for a lower set fee since you've already agreed on a purchase with the seller.

If you're buying the house below the market price, you may be able to borrow against the appraised value, which can give you some money to work on repairs. Or, there are renovation loans available from FHA for exactly that purpose. Ask a mortgage broker about that.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Wed Apr 18, 2012
If you are buying with cash all you need to do is contact a real estate attorney and have a deed change from them to you and you exchange the money. If a loan is involved there are more steps but you won't need a Realtor, a lawyer and a loan officer are what you would need.
0 votes Thank Flag Link Wed Apr 18, 2012
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