Marklan, Home Buyer in 27284

I would like to help my sister get a house

Asked by Marklan, 27284 Sun Dec 8, 2013

Two years ago my sister went through a divorce and the they lost their house to foreclosure. She has been renting since then $600 a month. I would like to buy a house for her in my name using my money as the down payment. Let her rent it from me for three to five years, with no profit to me, until her credit score comes back up, then sell the house to her for the remaining balance again no profit to me. The down payment money, most likely, would not be repaid to me. She would put up the down payment money when buying it from me or I would bank money for her toward her down payment by charging rent beyond the actual payment amount. What's the best way to do this? I know that if something was to happen that she was unable to get the house in three to five years I would be out my down payment and the realtors commission to sell the house but I am willing to take the risk to help her get out of paying $600 a month rent the rest of her life.

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7
Marklan, Home Buyer, 27284
Sun Dec 8, 2013
Thanks to everyone for your replies. They are really helping a lot. I have spoken to a realtor that I have used 3 times before but we have not discussed the details. I would not have any problems on my end with my credit and being able to afford to do it. I need to be sure that is what my sister really wants to do and will put forth the effort to get the down payment money together in time for the transfer or if she would rather just pay $600 a month rent the rest of her life. For myself, I would think it would be less stressful to own something that I had some equity in at retirement even if I was still making payments less than the $600 a month on it. Thanks again
0 votes
John Riggins, Agent, Winston Salem, NC
Sun Dec 8, 2013
I am a local agent here in Winston Salem and can assist you through the process. I have some fabulous lenders that can assist you and your sister in the proper steps. Please let me know how best to assist you and we can get the search started. Have a great day. John Riggins
0 votes
Larry Story, Agent, Greensboro, NC
Sun Dec 8, 2013
Marklan,

To get started you need to contact a local Triad area realtor. We can then help you find what you need for your sister. As some have mentioned you will also need to start the conversation with a lender. Whether you would like to use your present bank or lender or to use one that the realtor can refer you to. Your local realtor can help you navigate the process. That is what we are here for.

As far as the future sale to your sister you there are lenders that will work with a buyer to help them to get their credit to where it needs to be in order to be able to buy a home. This is but one detail that we can help you with. Since it has already been two years since the foreclosure it will not be long till you sister would be eligible (depending on her credit score and other variables) to buy a home. Now some banks/credit bureaus will use the date the foreclosure home sold or the date of the foreclosure of the persons loan. Your sister can actually pull her own credit report once a year at no charge to her. There are many factors to consider but as brokers we deal with these situations everyday.

As a Triad area realtor if you have any questions or would like some help feel free to contact me through my profile here on Trulia.


Hope this helps,

Larry
0 votes
Sandy Robert…, Agent, Kernersville, NC
Sun Dec 8, 2013
I'll be glad to help you find a home. I can make recommendations for local lenders and help you with your home search. Give me a call at 336-918-5332 to get started.
0 votes
Christopher…, Agent, Hope Mills, NC
Sun Dec 8, 2013
Call a local agent and explain the situation. They should be able to help with no problem.
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Sun Dec 8, 2013
What you're looking to do is actually fairly straight forward. You'll want to contact a local Realtor in Winston- Salem and speak with a mortgage lender to get yourself pre-approved for a loan and they can help you in terms of determining price range. When your sister is in a position to get her own mortgage in a few years the transfer can be done without a Realtor the closing attorney you use to purchase the home can handle the actual transfer for you quite simply, all it will require is for your sister to get a mortgage.

In my mind what you're doing is commendable; you're fortunate to be in a position to help and your sister is fortunate that you're there for her.
0 votes
Robert Baker, Agent, Edmond, OK
Sun Dec 8, 2013
Call a lender and get pre-qualed, then hire an agent, buy a home, done.
0 votes
No there would be no tax to her since the home would not be in her name. When she buys the home the amount she pays is what the loan is based on. The equity you "gift" her is not taxed since it is merely equity in the home not cash.


Hope this helps,
Flag Sun Dec 8, 2013
Would there be any kind of tax to her, like a gift tax, on the downpayment money I put into the house? Ex. $100,000 house. I put 20% ($20,000) down. Later sell to her for $80,000. She puts 20% down ($16,000)
Financing $64,000.
Flag Sun Dec 8, 2013
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