Home Buying in Peabody>Question Details

Wanda, Home Owner in Lynn, MA

My father and I live in his house in Lynn,Ma. He is 80 years old and I am on SSI. He owes $45,000.00 on his mortgage. Can he sell me the house for?

Asked by Wanda, Lynn, MA Fri Oct 7, 2011

$45,000.00 and I would pay a mortgage for that price which would be a low mortgage. Would that work out?

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8
Annette Levinson’s answer
With a FHA mortgage your father can sell the house to you without a downpayment or you paying closing costs. He can give you a gift of equity for the downpayment and closing costs, so you really need to know how much is currently owed on the house and what closing costs would be. Speak with a mortgage officer to see if you qualify for the mortgage.
0 votes Thank Flag Link Tue Oct 25, 2011
One Dollar if you were a good son !
0 votes Thank Flag Link Sat Nov 9, 2013
if the mortgage is assumable and the bank approves it.
0 votes Thank Flag Link Thu Jan 3, 2013
You need to find out if his mortgage is assumable (FHA), If it is contact the lender and see if you can take it over. If the home has equity this allows you several other options. If you qualify for a mortgage that clears the existing mortgage then you can pay off his and get a new mortgage in your name. You might want to talk to a local bank or Realtor.
0 votes Thank Flag Link Tue Oct 25, 2011
Wanda:

Sure he can sell you the home. The question is whether or not you qualify to buy. If you do and your siblings do not object to the sale then you will be good. Depending on your age and the equity position in the home you may be able to do a reverse mortgage to purchase the home. Wells Fargo is one of the banks that offer this program and I used it to help a person purchase a home. Best
0 votes Thank Flag Link Sun Oct 16, 2011
Wanda,

Get pre-approved using your current SS income. Get a payoff from his lender to see exactly how much you need payoff. Ask the lender for a good faith estimate. You will be responsible for all the bills; real estate taxes and homeowners insurance and utilities. Assuming you are qualified ask your lender what the minimum gift of equity your Dad you need to give you. If it is for example 25%, then he sells the property to you for $65,000 with $16,250 gift and 3,750 left over to pay for the costs. Your loan in this case would be $48,750 this is just an example check with your lender. There may be some gift tax check with a tax professional.

Good luck,

Eric
Web Reference: http://www.teamerickson.com
0 votes Thank Flag Link Fri Oct 7, 2011
What are you going to put as a down payment? You also may find it difficult to find a mortgage in that low range. A gift of equity is allowed. My suggestion would be to first get some legal and tax advice to figure out a good price that benefits you both (assuming your dad wants this). Then structure a sales price and mortgage you can afford which may get some cash proceeds into your dad's savings account.
0 votes Thank Flag Link Fri Oct 7, 2011
Wanda...your Dad can sell you the house for whatever he wishes. You would need to get a mortgage in that amount, there would be closing costs involved in this transaction, however. You may want to see if the mortgage is assumable (some are) in which case you would take over the payments.....the mortgage company would know this.
0 votes Thank Flag Link Fri Oct 7, 2011
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