Home Buying in 75040>Question Details

Debmonie, Home Buyer in Garland, TX

Can you buy your parents a home without being the current resident?

Asked by Debmonie, Garland, TX Mon Oct 28, 2013

Help the community by answering this question:


Yes it's completely possible to buy your parents a home or any real estate without being a citizen. You can simply have the contracts and the title written in your parents name and you can supply the cash for the purchase.

Chris Hutchinson
The Michael Group
1 vote Thank Flag Link Mon Oct 28, 2013
Well it seems your question has been answered if your looking in Dallas or east of Dallas I would be glad to help you locate a home please give me a call.

Larry Olsen
469 688-2862
0 votes Thank Flag Link Wed Oct 30, 2013
Yes, you can as an invesment if your not occupying the property, even if you live out of state you can get the loan if you need one where your reside and get a local Realtor to find them the property in the city & state that they need it. If you have a good social as a resident/citizen would be a regular invesment loan, if you have ITIN # as a foregin there are special programs too, of course these programs you have to qualify with credit, job estability, credit scores etc...Best thing to do is contact a loan officer at you location and if you need a Realtor in Garland, Tx. will be happy to provide your parents my services. Good Luck...Dee
0 votes Thank Flag Link Mon Oct 28, 2013
Yes, you can. I currently have a mortgage client (I am a Realtor and Mortgage Broker) buying a home for his son to live in here in Texas. Father lives in California. We had to structure the loan as an investment property purchase but other than that it is similar to any other type of purchase.

Hope this helps. Please call or email me if you have any questions.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Mon Oct 28, 2013
Yes you can. You just cant claim it as your primary resident for tax purpose.

0 votes Thank Flag Link Mon Oct 28, 2013
Yes you can

Jim's answer was great, but let me elaborate on it a little.

You can definitely buy your parents a home, It is not required that you live there. However, if you are not living in the home with them than the rules for financing are a little bit different. The home would be considered an investment property. You will probably need to provide a larger down payment (20% or more) and the interest rate will likely be a little higher than for an owner occupied home - probably in the ball park of 1/2% higher.

An alternative to this would be if your parents have good enough credit to qualify for a mortgage, but they are just short on being able to qualify themselves. FHA permits a relative to act as a "non-occupying co-borrower". A non-occupying co-borrower is a credit applicant who:

• does not occupy the subject property as a principal residence;
• may or may not have an ownership interest in the subject property as indicated on the title;
• signs the mortgage or deed of trust note;
• has joint liability for the note with the borrower(s); and
• does not have an interest in the property sales transaction, such as the property seller, the builder,
or the real estate broker

Basically, you would be responsible for the loan equally with your parents, and the lender could consider YOUR income, debts, and assets towards qualifying.

Feel free to call me. I will help as best I can to sort out your options.


Tony Grech | Mortgage Loan Originator | NMLS #977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 ext. 278
Mobile (313) 622-7383
Fax (248) 945-4842

0 votes Thank Flag Link Mon Oct 28, 2013
Maybe, 3 routes to consider:
1. Pay cash
2. Finance with a non-owner occupied mortgage loan
3. Parents carry back the loan

Don’t play games with #2, one of the frequent questions I am asked is how to get an owner occupied loan for a non-owner occupied property, you don’t. It is a serious crime to misrepresent anything in the mortgage process.

On #3, if your parents do not have a mortgage on the home and all you are trying to do is help their cash flow, this could be good. If they have a mortgage any change in title could trigger the due-on-sale clause in their mortgage agreement so be careful. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Mon Oct 28, 2013
Do you have a social security number or a tax ID? If so, you can buy the home yourself. E-mail me if you would like more details.

Sigrid Ruetti
Coldwell Banker Residential Brokerage
0 votes Thank Flag Link Mon Oct 28, 2013
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