Home Buying in McAllen>Question Details

wilson.karla…, Home Buyer in 22193

Mom’s selling her house to me.I’ll use the home for investment.Can I use a gift of equity for the down payment to purchase as an investment?

Asked by wilson.karla.l, 22193 Wed Jan 9, 2013

property? She's looking to clear 100K minimum and Im looking to pay as little down as possible. I am an experienced landlord with 2 other properties in the same city.

Help the community by answering this question:

Answers

3
Normally no if you are talking about getting a loan. Most lenders want you to have skin in the game. Real cash, but this is a decision of your lender. You will want to check directly with them to be sure what they will allow.
0 votes Thank Flag Link Mon Jan 14, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
I will give a provisional answer of "yes", but I will bet the real answer depends upon the bank and the guidelines under which they operate.
0 votes Thank Flag Link Wed Jan 9, 2013
We do not allow a non-arm’s length transaction on an investment property. I think most lenders will have an issue with that. And if you can find one that will allow it the circumstances on your mom’s side will also come into play. If she is behind on her mortgage most lenders are not allowed to make a bail out loan. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Wed Jan 9, 2013
Thank you for your response. She is not behind on the property. She is retiring and moving. Me purchasing it would have given her the opportunity to purchase her retirement home without moving out of her current home first. She can take her time and move her things if I am the new owner.
Flag Wed Jan 9, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer