I own low 1st mortage and 2nd interest only tacked on. Can I "sell" to my adult child the home using both our names since his credit score too low?

Asked by danibizd, Frisco, TX Tue Aug 14, 2012

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Misty McMill…, Agent, Frisco, TX
Tue Aug 14, 2012
You wouldn't be "selling" the home to your son if you are still on the deed and the loan. You would be refinancing the property and adding your sons name should he qualify. If his credit is bad it is likely he would not qualify for the loan and it wouldn't work. I'm not sure what you mean about 2nd interest only tacked on? You need to speak with a loan officer to determine if what you can do is feasible and if your son would even qualify.

Here is a great loan officer that I have used many times. give him a call and see if he can assist you.
Shane Masterman
Willow Bend Mortgage
Senior Loan Officer
NMLS# 231190
5800 W. Plano Pkwy #105
Plano, TX 75093
Cell 214.274.6089
Office 972.588.9490
E-Fax 1.877.501.4499
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Susie Kay, Agent, Dallas, TX
Tue Aug 14, 2012
Talk to your lender or if you need one let me know.

Susie Kay, Realtor®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240


Servicing your real estate need is my priority!
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, ,
Tue Aug 14, 2012
What is your goal here? To raise the price above what you currently owe, and end up with cash-out? Or to refinance the 2 loans to a lower interest rate? The lenders are required to use the lowest "mid-score" of all borrowers. If his score is too low, I'm back to wondering why you want to do this? Is he going to live in the house now? If that is the case, the best idea would be to work with an experienced loan officer to take steps to raise his scores.
Good luck!

Barbara Coker
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
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Mike Gonzalez, Agent, The Colony, TX
Tue Aug 14, 2012
You’ll likely run into the lender’s “arms length transaction” restriction but this is a great question for an actual lender, whether it’s a bank or mortgage broker. There are a couple alternatives, such as adding your child as an owner with a special warranty deed or offering your child owner financing but I agree that all these options should be thoroughly discussed with a qualified tax planner and attorney.

Good luck!

Mike Gonzalez
SFR-Certified Realtor / Broker
Mosaic Realty
214-783-4240 | Mike@MosaicDFW.com
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