You need to speak to your accountant about what type of tax benefits you will receive. Then you need to speak to a mortgage banker as well to see how you can structure the deal and what the best mortgage option will be.
If you have the ability you may be better off just purchasing the property all cash. If I can be of further assistance, please let me know.
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
TD Bank Group is a US base bank owned by The Toronto-Dominion Bank is a Canadian multinational banking and financial services corporation headquartered in Toronto. It is the second-largest bank in Canada by market capitalization and based on assets, and is the sixth largest bank branch network in North America.
We offer programs single to multi family mortgage visit my website at http://www.tdbank.com/tonybusanich for rates and programs and fees.
Or contact me by email at firstname.lastname@example.org
FHA allows a non-occupying family member to co-sign for a borrower when they cannot qualify on their own due to income reasons. A co-signer cannot make up for bad credit; only the lack of credit and/or sufficient qualifying income.
There are many scenarios in which the program can help:
Â· Occupying borrower is a college student with limited verifiable income for qualifying purposes
Â· Occupying borrower works for cash income
Â· Occupying borrower has been self-employed for less than 24 months and thus has non-allowable income for qualifying purposes
Â· Occupying borrower recently made a complete change in employment field and has non-allowable income for qualifying purposes
Â· Occupying borrower has no credit and cannot provide non-traditional credit sources
Â· Occupying borrower recently received a large pay increase not consistent with earnings history rendering income non-allowable for qualifying purposes
Â· Occupying borrower is between jobs or assignments rendering qualifying income not usable
Â· Occupying borrower was recently discharged from military or is expected to be discharged from military in near future and has not secured civilian employment for qualifying income
Â· Occupying borrower is recently returning to the workforce after an extended leave of absence
Standard niece and loan limits apply for transactions including non-occupant co-borrowers when the subject property consists of one unit and when the non-occupant is related to the occupying borrower by blood, marriage or law. Additional family relationships will allow for maximum financing as well. For example, an uncle can co-sign for niece/nephew. When the non-occupying borrowers are not related by any of the situations described above, loan-to-value is limited to 75%.
All applicants are required to sign the note and mortgage and must be listed in title to the property regardless of occupancy. The non-occupying applicant must understand they are financially responsible for the mortgage so if they occupant does not make the payment and the loan defaults it will have a negative impact on both of their credit profiles.
FHA guidelines do not require qualifying of the occupying borrower but lenders are looking to see that they are capable or will be capable of making the payments themselves. The whole scenario has to make sense and it helps to have plenty of compensating factors like low DTI, plenty of reserves and steady income.
For more questions or details please contact me at your convenience.
Yes I agree with many of the responses, for tax benefits you must consult your accountant. And the mortgage information/qualification must be discussed with a mortgage banker they are the best people to answer these questions.
Additionally, I am curious how you came up with a 650K value did you see something specific that you are interested in, do you have a particular area in Brooklyn that you are looking in? Is your daughter attending college and you want to be nearby or did she land a great new job in New York City and you want to becloser to the city. I can recommend a few mortgage agents if you need assistance and will be happy to help you find the right condo for you daughter when you are ready. please feel free to contact me directly anytime and i will be happy to do some research for you as to what is available.
I would be happy to work with you and your daughter in finding the right place for her and you. Please call or e-mail me if you would like to discuss this at greater length.
Barbara Ann Rogers, Licensed Real Estate Broker, Certified Negotiation Expert
William B. May
Office 212-696-1866 x7
Mobile Phone 718-664-8434
Please call or email to discuss further.
Vice President/Associate Broker
Prudential Douglas Elliman
If you send me an email at email@example.com, I will be happy to provide you with 3 or 4 contacts in various arenas of mortgage brokering so you can ask each one the question.