Home Buying in Brockton>Question Details

Don, Renter in Brockton, MA

I am presently living in a home that is owned by a relative; is it possible to have the mortgage transferred in my name, and my relative to co-sign?

Asked by Don, Brockton, MA Mon Sep 20, 2010

I am paying the mortgage ($3,108,00- P&I; taxes, and insurance).. the present interest rate is 9%.

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7
Hi Don
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 don’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

Thank you,
Barry Little
508 733 4858
http://www.MassLoanInfo.com
PS if you do not purchase this home it is time for your relative to refinance that 9% interest rate….soon
0 votes Thank Flag Link Wed Nov 17, 2010
Don- It is not as easy as transferring the mortgage to your name. There are two ways of dealing with it.

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.
Web Reference: http://www.thehousewiz.com
0 votes Thank Flag Link Tue Sep 21, 2010
Anything is possible, Don, but there are many questions. Is your credit strong enough to qualify for a mortgage? Will the property appraise high enough for the amount of the note? Start at the financial institution that currenty holds the mortgage to find out what the terms of the loan are. The 9% interest rate is a potential red flag since mortgages are running under 5%. Please feel free to contact me and I will be happy to help to point you in the right direction.
0 votes Thank Flag Link Mon Sep 20, 2010
Probably not. Assumable mortgage loans haven’t been around for quite some time. You will need to go over the original documents for a definitive.
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.
0 votes Thank Flag Link Mon Sep 20, 2010
Don,
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.
0 votes Thank Flag Link Mon Sep 20, 2010
You need more information on the loanm. If the motgage is assumable then it is possible.
0 votes Thank Flag Link Mon Sep 20, 2010
Hi Don, I would recommend finding out more details on the loan to see if it is transferrable/assumable. Check with the mortgage holder. If it is, you would have to qualify for the mortgage and proceed from there. Best of luck.

Caroline Choi
Broker Associate/Realtor
http://www.CarolineSellsTheCity.com
0 votes Thank Flag Link Mon Sep 20, 2010
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