Home Buying in 11211>Question Details

Willie, Home Buyer in Charlotte, NC

what is the best way for well off parents to buy a condo in Brooklyn,NY for a daughter to live in? She cannot qualify for a loan on a $650000 property

Asked by Willie, Charlotte, NC Fri Mar 2, 2012

we will not live in the property but would like the tax benefits of having the loan in our name. We would have to co-sign for the loan anyway. Is a loan for investment property more expensive than a loan for owner occupied residence? How should we do this?

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Dear Willie:

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
Email: MitchellSFeldman@aol.com
1 vote Thank Flag Link Fri Mar 2, 2012
I would be happy to work with you and your daughter in finding the right financing for her and you. Please call or e-mail me to discuss this at greater length. We offer programs with 20 % down with a co-signer or we may be able to view the option of a second home.
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 anthony.busanich@td.com

Tony Busanich
TD Bank
phone: 732-521-4699
Cell: 908-300-6660
0 votes Thank Flag Link Thu Apr 4, 2013
Call me for a unique pre-construction investment opportunity on a 3 bed 2 bath 2 balcony investment opportunity...


Jack Menashe
0 votes Thank Flag Link Sat Mar 3, 2012
You can use FHA as a Non-Occupying Co-Borrower.

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:

· Occupying borrower is a college student with limited verifiable income for qualifying purposes

· Occupying borrower works for cash income

· Occupying borrower has been self-employed for less than 24 months and thus has non-allowable income for qualifying purposes

· Occupying borrower recently made a complete change in employment field and has non-allowable income for qualifying purposes

· Occupying borrower has no credit and cannot provide non-traditional credit sources

· Occupying borrower recently received a large pay increase not consistent with earnings history rendering income non-allowable for qualifying purposes

· Occupying borrower is between jobs or assignments rendering qualifying income not usable

· 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

· 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.
0 votes Thank Flag Link Fri Mar 2, 2012
Hi Willie
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.
0 votes Thank Flag Link Fri Mar 2, 2012
Your mortgage banker or broker is the best person to answer your questions in terms of the financing. Parents buying apartments as investments while their children live in them is very common in new development condos in Brooklyn and elsewhere, and is even possible in some co-operatives. I have recently represented the buyers of two Brooklyn co-ops; in both cases, the parents and their child were co-purchasers.

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
E-fax 718-228-4093
Mobile Phone 718-664-8434
0 votes Thank Flag Link Fri Mar 2, 2012
Hello. There are several ways to go about this and a mortgage banker can explain the best option for you based on the amount of money you are prepared to use as a down payment as well as other factors. I have worked with many clients in this situation and would be happy to put you in touch with mortgage bankers/brokers that can assist as well as help find the ideal property for you.

Please call or email to discuss further.

Rachel Poggi
Vice President/Associate Broker
Prudential Douglas Elliman
0 votes Thank Flag Link Fri Mar 2, 2012
The easiest way would be to co-sign on the loan. If you're buying it solely in your name, you'll have to plunk down a much higher downpayment.
0 votes Thank Flag Link Fri Mar 2, 2012
This is a question best answered by a mortgage expert.

If you send me an email at gail@gailgladstone.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.
0 votes Thank Flag Link Fri Mar 2, 2012
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