As mentioned here, there is a good chance that the
current loan is not assumable.
If that is the case, then you would need to qualify for the loan.
As for a down payment, your relative could gift you a 20% down payment (not actual cash, as credit) this would allow you to not have to come up with a down payment.
An example would be Price:
$250,000, paper gift (credit) from relative of 20% or $50,000 loan amount of 200,000 and no private mortgage insurance( PMI).
Now if you donâ€™t qualify for the mortgage on your own, another alternative would be to purchase a different home not owned by a relative, using the Federal Housing Administration FHA program.
FHA is the only program that still allows for a non-occupying co-borrower to be on the mortgage, in fact your income or credit may not even be considered if the non-occupying co-borrower can qualify with their other obligation/debt.
Often times we see parents purchase a condo or multi-family house for their children going to college and put the property in all the names.
If you would like more information please contact me at 508 733 4858
508 733 4858
PS if you do not purchase this home it is time for your relative to refinance that 9% interest rateâ€¦.soon
1- Put your name on the deed and refinance with just you on the mortgage
2- Purchase the home yourself
Regardless of how it is done you will still need to qualify for a mortgage on your own. A bank will not just transfer a balance of a mortgage to someone elses name.
If you qualify, why not buy the property from your relative? 30 year fixed rates today are under 4%. That's a great savings compaired to the 9% loan. At the very least, your relative should refinance. Go on line and look at rates/monthly payment prices in your area.
At 9% someone should do a new loan. If you purchase it, and have good credit you will get an owner occupied rate versus an investor rate. Your rate and payment should come down, but there are so many variables you'll need to sit down with a lender to work out many details. Is your relative willing to sell? Is there equity in the home? Will your relative expect to receive some of it? Can you use some of your payments as down payment or will you need to come up with 3.5% or more? Lots more come to mind.