My Uncle bought a house for me and my wife...Is there a way we can be added in the mortgage loan?

Asked by Jeremy, 94587 Thu Jun 21, 2012

or I guess the appropriate question is what is the best way to do this without too much money involved on our part?

We didn't have good credit. And still do because we just had a short sale a couple of months ago...

Appreciate it much.

living here in CA.

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Pacita Dimacali’s answer
Pacita Dimac…, Agent, Oakland, CA
Thu Jun 21, 2012
If you still don't have good credit, then you may not qualify to be on any loan. To add your names on a loan may require refinancing the loan.

IF, however, what you'd like to do is to have your names on the title to the property, you can have your uncle accomplish that quite easily. Check with the escrow officer who handled the purchase and she/he could give you advice to get this done.

And if you want to take over the payments, you can have an agreement in writing between you and your uncle that you are responsible for the mortgage payments. This, however, does not release your uncle from obligations to repay the mortgage as long as only his name is on the mortgage. your credit improves and you are paying down your debts, you may qualify to get a mortgage at which point your uncle can attempt to refinance the property with you as the primary borrower.
1 vote
Your first step should be to get your names on title --
Or your uncle can even give you a quit claim deed (but it still doesn't release him from the loan)
Then make the payments from your own checking account to establish a paper trail of mortgage payments. And don't miss or be late with your payments so that you also establish a good payment history which should be helpful when it's time to refinance.
Good luck!
Flag Tue Jun 26, 2012
Thanks for the reply. Appreciate it much.

HOnestly, we actually just used my uncle's name. all the money (meager it may be) that included the downpayment, closing cost, tax, pretty much all costs came from our own pocket. We also pay our own mortgage and property tax, and HOA.

The plan is to have our house soley in our name eventually. I'm just wondering if there's anyway we can expedite the process..

appreciate it as always.
Flag Mon Jun 25, 2012
Ron Thomas, Agent, Fresno, CA
Thu Jun 21, 2012
Everyone can check me here,
I believe that the first thing; your Uncle should write a letter to the Lender adding you and your wife, for access to the loan information. They will need his written permission to add you.

Then, if you started making the payments, using your personal checking account, you might get credit for doing so.
After 3-6 months, I would call them and see if your name has been added to loan.

Good luck and may God bless
1 vote
Thanks Claudia. Appreciate it.
Flag Tue Jun 26, 2012
Hey Ron
The loan must be formally assumed by the nephew.
If the loan is not an assumable loan, then the nephew can only be added as an acceptable party to discuss the loan with the lender.
As long as Jeremy is on title and he can show he has been making the payments out of his account, he can qualify for a refinance in his name.
But unless the lender saw his complete package, he will not be included on that loan for credit purposes.
Of course, he can get all the mortgage interest credit if the uncle gives him the interest statement for his taxes.
Sorry to be long winded...
Flag Tue Jun 26, 2012
Thanks Ron. This is interersting.. has this been done before in your experience?

Appreciate it.
Flag Mon Jun 25, 2012
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Jun 26, 2012
The short answer is no.

I would also be careful about messing with the financing or title since your uncle told the lender he was buying it for himself as an investment, unless he put you and your wife on title when he bought it. The mortgage has a due on sale clause if the title changes, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Tue Jun 26, 2012
When your Uncle purchased the home he had the option to add you and your wife as "tite only' owners. This gets you on the title from the inception of the purchase. It would have gotten you on the title with no charges from the tax assessor.

He can now deed the property from hisself to all three of you (uncle, you and your wife). This can be done with a Grant Deed. He deeds his title over to all of you.

This should be done sooner than later, as the county will charge you a transfer tax based upon the current value of your home. Talk to the county and ask them how much that will cost. In Alameda county it could cost up to $1.10 per thousand ($220 on a $200k home).

If your plan is to make the payments and then refi two years after the completion of the short sale, you need to be on a title for a minimum of a year to be able to refinance that home in your name. You should be writing the check directly to the bank, as well. You need to establish that you are the owner and the party who has been responsibly paying that mortgage.
0 votes
John Arendsen, Agent, Leucadia, CA
Thu Jun 21, 2012
I think you just answered your own question. If you can't qualify for a loan how can you expect to be on it without qualifying. Of course your Uncle could actually be a co signer but then I would think that with your credit that might change the whole dynamic as to what the terms, conditions and interest rate would be. You may just want to leave well enough alone and consider yourself lucky to have a rich Uncle who's willing to help you get another chance at homeownership. Just my opinion.
0 votes
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