Home Buying in 94555>Question Details

Fremonthomeb…, Home Buyer in 94555

How can I buy a home with help from my parents?

Asked by Fremonthomebuyer, 94555 Tue Sep 13, 2011

For the down payment: I would like to put up 10%, parents chip in 40% and we would like to mortgage the house for the rest of the 50%. My parents are from a different country, are not US citizens or green card holders and don't have US social security numbers. I would be making payments on the 50% mortgage. How can I structure this transaction?

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Jeremy Lehman’s answer
Michael nailed it, get the money in your name before anything else. Work closely within the guidelines of your lender as well. If you don't have a lender, get one before you do anything and follow their advice.

Best of luck...
0 votes Thank Flag Link Wed Feb 29, 2012
You have it structured. The key word is "Gift." Once you find a property, this will work out perfectly.

Happy funding, Rudi
Web Reference: http://www.umboc.com
1 vote Thank Flag Link Tue Sep 13, 2011
You can put your parents on Title after the transaction is recorded. That way they would have a legal interest in the property.

The only issue would be when the property is sold or refinanced. Then your parents would need to be removed from Title. With a refinance you would just put them back on after the transaction was recorded.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Wed Sep 14, 2011
You probably won't be able to put your parents on the deed unless they are also on the mortgage with you.
0 votes Thank Flag Link Tue Sep 13, 2011
What if I want my parents name on the deed?
0 votes Thank Flag Link Tue Sep 13, 2011
If you will be living in the home, then it is fine to get a gift to supplement your down payment, or it can be your entire down payment. The gift needs to be "sourced", meaning verified where the funds came from. This is done by providing a few key pieces of documentation:

1. A gift letter - must include the $ amount of the gift, the donor's name, address & telephone number, identify the property address (in most situations), the relationship of the donor to you, and indicate there is no expected or implied repayment of the gift.
2. Document the withdraw from the donor's account - copy of the wire confirmation or cancelled check is most common, sometimes a lender will want a 30 day account history leading up to the funds transfer from the donor
3. Document the deposit into your account - copy of your bank statement showing the amount showing up in your account as "available funds".

The donor's do not need to be U.S. Citizens or have even set foot in the U.S., however the funds do need to be verified in the above manner, in English or in the foreign language accompanied by an official U.S. English translation (the gift letter + documentation of funds going into your account must be in English, their bank statement may be in the foreign language with official translation).

Sometimes instead of both #2 & #3 - the funds can be wired directly from the donor to the escrow/title company at closing and then verification is taken care of by the wire confirmation the escrow/title company provides the mortgage lender's funder (the person who will fund your loan) - and none of the extra paperwork is needed (funds going into your account, etc.)
0 votes Thank Flag Link Tue Sep 13, 2011
Yes, it's possible. I just structured such a transaction for one of my clients in the exact same situation. The key is to get the money under your name first. As for how you'd structure the transaction, it's best to discuss your situation in detail first before giving any recommendations. Give me a call.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Tue Sep 13, 2011
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