Home Buying in Connecticut>Question Details

Michelle, Home Buyer in Connecticut

can my parents help me buy a condo?

Asked by Michelle, Connecticut Wed Jan 9, 2008

my boyfriend and I want to move from our apartment into a condo this summer. To avoid legal issues if something were to happen between me and him my parents have offered to help me buy the condo. They would help with the downpayment/upfront expenses, while my boyfriend and I would split the monthly payments. Is this allowed? If my boyfriend will be living in it does he HAVE to be a part of the purchase? Would his credit score be taken into account if he's splittnig hte monthly payments with me? Could he just pay me and then I send in one check for the two of us?

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If your wonderful parents give you help with the downpayment, and other upfront expenses, and you're going to put the condo in your name, the lender will be looking at your income as to whether you can qualify for a loan. Unless your boyfriend is on the title, and I'm with your parents on this, I don't recommend that until you're legally married, the bank is not going to be interested in his credit score. They will be looking solely at your finances. YOU are the one who will be legally responsible for making the payments.

If you do get the loan, the lender isn't going to care where the money comes from. You can certainly have him pay you, and you'd send one check in to the lender.
1 vote Thank Flag Link Wed Jan 9, 2008
Alan May, Real Estate Pro in 60201
MVP'08
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Michelle,

You are faced with two important issues: Financial and legal.........

Our recommendation is to consult with several mortgage people to get their input on the financial aspect of this sinerio. In an effort to protect the interests of everyone involved it is also important to speak with an attorney that can make recommendations on how you should proceed safely.

Good luck
0 votes Thank Flag Link Wed Apr 29, 2009
Hi Michelle

Your best bet would be to consult with a mortgage professional as far as being "gifted" money for a down payment. It can be done. You may wany to consider taking a "loan" from you parents rather than a "gift". You may be better off as a first time homeowner, (if you haven't purchased a home yet) and take advantage of the 8k tax credit which you don't have to pay back as long as you live in the property for at least 3 years.
0 votes Thank Flag Link Wed Apr 29, 2009
Hi Michelle,

You would need to speak to your mortgage person to see how much your parents are allowed to "Gift", but certainely that can be done. If you or your parents want everyting in your name then your boyfriend nor his income nor his contributing part of the monthly mortgage would be taken into account. Pretty much everything would be in Your Name only. Make sure that you and you alone can afford everything is going to be in your name.

I would be happy to talk to you and assist you. I'm in the New Haven area. Good Luck!
Web Reference: http://www.QuinnRe.com
0 votes Thank Flag Link Mon Jan 21, 2008
They can most absolutely help you. The one thing to take into consideration is if your going to buy the condo using CHFA - or the Connecticut First Time Homebuyers assistance program. They have strict guidelines as to what you can have regarding income limits etc.. It is definitely wise to have only you on the title and he pays you and you send in one check, as long as your aware that if he leaves, then your responsible for the whole thing regardless.. You should definitely talk to a Realtor and a Mortgage Professional. Give me a call or drop me an email - I can help 860-539-5373

-Carl Guild
mail@carlguild.com
Web Reference: http://www.carlguild.com
0 votes Thank Flag Link Wed Jan 9, 2008
It's not uncommon for parents to help with the downpayment for their child's home purchase, so that's no problem. The question is: who is going to be applying for the mortgage? If you are applying alone, then only your credit score is considered. If you and your parents apply together, then all three credit scores are considered. The only reason the mortgage company would consider your boyfriend's credit score is if he is applying for the mortgage with you. Otherwise, it doesn't matter who is living in the condo or helping with the mortgage payments. Once you close on the condo, all the bank wants to do is get paid each month.
Of course, keep in mind that if you can not qualify for the mortgage loan on your own, and you need the income of your boyfreind to afford the condo mortgage payments, then you probably would need to consider applying for the loan together or with your parents.
If you need any further info, feel free to contact me.
Best regards,
Mary
0 votes Thank Flag Link Wed Jan 9, 2008
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