Home Selling in Florida>Question Details

Heids077, Other/Just Looking in Florida

My husband bought our house a few years before we got married (his name only). Can I buy it from him to get a lower interest rate?

Asked by Heids077, Florida Sat Oct 22, 2011

He has an "expanded approval fannie mae loan" which makes us ineligible for the HARP loan program; and we owe slightly more than the house is worth so we can't do a traditional refinance. Currently there is a 7.35% APR on the mortgage and we would like to lower that if possible.

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If you're considering a purchase to artificially boost the price of the home up to meet the refinancing underwriting requirements, that's not a very prudent course of action. You would get stuck if/when the house appraises for less than the purchase price. And, since this would not be an arms-length transaction between two unfamiliar parties, lenders will closely scrutinize your transaction. Your best bet would probably to keep working with mortgage broker or lender to find an alternative financing plan.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Sat Oct 22, 2011
Good Afternoon Heidi,

Your question has a few different levels to it. If you are looking to bypass letting the lender know that you are purchasing it from you husband, just because your last names are different it would not (as already stated) be an arms lenght transaction. You would not be able to purchase it from him as a short sale, as you would not meet the requirement of not having a relationship with the current legal owner. If your goal is to refinance and keep the home, and you are experiencing financial hardship, you are best served to discuss the options with your current lender to see what they do for you. If your refinance is just to reduce the rate, but you are not having a financial hardship, then you may have some additional options in doing a refinance in a conventional way. With the guidance of a mortgage professional and a real estate attorney, you can be added to the title and get a new refinanced mortgage with your husband at a lower rate, but of course, that will depend on the value of the home and how much equity you have. Any decision you make, you will want to see the professionals for the things you are looking to do. Good luck to you.

Lila Lopez
RE/MAX Advance Realty
305-772-2521
0 votes Thank Flag Link Sat Oct 22, 2011
If you got an Expanded Approval (EA) then your existing mortgage lender still may be willing to still refinance you - I see that guideline a lot which prohibits EA approvals being used unless they already have the current loan.

But because you owe more than what the home is worth, you would need to bring in just as much money (if not more) to purchase the home than to refinance.

Did the loan officer look into adding you to the mortgage in order to get an Approve/Eligible instead of an EA?
0 votes Thank Flag Link Sat Oct 22, 2011
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