Were you planning on putting any money into the deal? What were you going to do about closing costs?
Speak with an attorney ASAP to get the transaction together.
As far as the as far as the value you of the house being sold to you... 320k sounds like a great deal and I did see you use the words "purchase the home" from your parents.
There is no gift in there. Speak to an attorney to facilitate the transaction for you.
If you need the name of a good Real Estate attorney, email or call and I can help you with a few!
With the numbers you are providing, you are in a great position. Your downpayment can be a "gift of equity" and closing costs should also come out of the equity of the house.
You should be able to buy the home without any money out of your pocket.
Feel free to contact me for more information at 908-415-3958.
Member: Worldwide ERC
Member: New Jersey MLS, Garden State MLS, Hudson County MLS
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Agent of the Year 2009
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
Very cool and fun new MLS map search: http://www.marcpaolella.com/SearchMLS
One additional way to do it is for your parents to hold the financing. You wouldn't even have to apply for a new mortgage with some lender. Instead, your parents would act as the bank. You'd pay them every month. That works best if they own the home free-and-clear. Otherwise, transfer of title without paying off the mortgage could trigger the lender's due on sale clause. If they still do have a mortgage, there are ways to address that--a wrap mortgage, for example.
One additional piece of advice: Your parents should consult with their CPA or accountant. There are all sorts of possible tax implications for them. And there are some implications for you, though generally not as serious.
A final thought: There are ways to accomplish the transfer using a trust, specifically a land trust, that might have benefits for all of you.
So, your parents and you really should consult with an accountant. There are a lot of ways to maximize the transaction for both you and your parents . . . and a lot of ways to expose yourself to tax or other liability when it's easily avoided.
Hope that helps.
I've got two super mortgage resources I'd be happy to share with you. If you are interested, reach out to me and I'll pass them along.
Unwavering Commitment to Service
Search the MLS at http://www.feenick.com