The real question may be...what's the best way to buy a property for my son..In that case there can be a few variables and perhaps an attorney or estate planner/tax adviser could provide some quality insight. If you wish to discuss I am happy to meet with you and give you the questions you might need to make the best decision. I have done a few of these and structured them a few different ways. You may find after meeting that you have the answers you need. Some are quite simple!
Have a great day and feel free to contact me.
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
In terms of "legal restrictions" we'd have to know what type of restrictions you're referring to and whether or not your son would be the primary purchaser. In simple terms, yes you can purchase a townhome for your son, or with your son, as long as you qualify for the loan in addition to your current mortgage(s) if any, or are paying cash. If your home is in the same region as the townhouse and your son is not the purchaser (you can be a co-signer), the townhouse can be considered an investment property and you could incur investor interest rates on a mortgage loan. As Kathy noted, the FHA option might be a good one to investigate. This is something to discuss with your lender when pre-qualifying.
It's still a great time to pick up well priced properties in VA and interest rates are extremely low, so go for it!
And, of course, if you aren't already working with a realtor, I'd be happy to assist.
Would it make your day if I told you that - I - gave you the thumbs up :-)
I must have a very magnetic personality, the air is dry, my computer is hyper-sensitive, or some other reason.
This is especially true when sending e-mails - it is enough for the cursor to be on the 'send ' button and the pad gets activated, which is why I always put the address as the last to prevent sending uncompleted e-mails.
Anyway, your THUMBs UP comes from me - I have a very vivid memory of it as it happened . If anyone else tries to claim it, they are not telling the full truth :-)
this is NOT the forum to debate me. If you wish to do so..contact me personally and I will be happy to give you a better understanding of my answer.
I did answer the question directly..can she buy a home for her son..Yes...legal restrictions NO..of course if he is not of age..He cannot have sole ownership...does this mean she can't buy it for him..NO..could be a trust etc. Again..I answered the question as it was presented.
THANKS TO WHOEVER GAVE ME THE THUMBS UP! Lyn Got the thumbs up too...same answer..No Restrictions!
Have a great day!
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
The real question may be...what's the best way to buy a property for my son..In that case there can be a few variables and perhaps an attorney or estate planner/tax adviser could provide some quality insight."
Didn't you just refer Lacuris to an attorney or estate planner/tax adviser yourself???
And I am glad you did because REALTORs cannot give advice outside the scope of their license.
Exclusive Right to Represent Buyer Agreement is very clear on that:
10. DISCLAIMER. The buyer acknowledges that the Broker is being retained solely as a real estate agent and NOT as an attorney, tax advisor, lender, appraiser, surveyor, structural engineer, mold or air quality expert, home inspector or other professional service provider. The Buyer is advised to seek professional advice concerning the condition of the property or concerning legal and tax matters. (...)
Needless to say, the scenario posted by Lacuris can have serious legal and tax consequences.
Good luck and would be happy to refer you a good lender for doing this.
Lenders will consider this an investment property - even though you are buying for a family member.
The larger the down payment - the lower the fees and closing costs.
Besides the large cash outlay - there are few restrictions.
Licensed in Maryland, Virginia and D.C.
Why not contact the lender that you plan to use for the VA loan and ask the question directly? There is no fee for the consultation.
You will have to decide how you want to hold the title to the property. The following articles may be helpful to you:
NOTE: For a legal and tax advice always contact experts in those fields.
Likely the best option will be to do an FHA loan. This would though require that you and your son be on the mortgage. You would be the "non-occupant co-borrower". If you can go FHA it would not be considered an Investor loan since you son (an owner) is living there. If your son cannot be on the mortgage than yes this will likely be an investor loan which tend to be at a higher interest rate and require a large downpayment. A lender can tell you if you and your son together qualify for an FHA loan. If you have to do it on your own it will likely be considered an investor which means a higher down-payment needed and a higher interest rate.
Hope this helps.
Feel free to contact me if you want to discuss it further