Ontario----Can I buy my mom's house without paying a downpayment and her take it off the selling price????

Asked by Canada_girl, 80237 Tue Mar 9, 2010

I want to buy my mom's house and don't have money for a downpayment....can she "gift" me the money for the down payment by taking it off the price of the house. The house is valued at 330 and she wants 280 for it. I currently own a house for 230 and would be selling it...

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Robert McGui…, Agent, Denver, CO
Sat May 11, 2013

You need to speak with a lender about your particular situation for a couple of reasons. There are complexities that we as Realtors are not qualified to answer. The other issue is that it looks like you are in Canada and we don't know if you are a citizen or what all of the issues may be. Also we don't know if or how much your mom owes on the home. This is probably not the right forum for this specific question. All the best in working this out.

Robert McGuire
Your Castle Realestate
0 votes
Shelley Brya…, Agent, Englewood, CO
Mon Jun 11, 2012
Her home also might be assumable so I would check with a local lender.
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Brian Burke, Agent, Highlands Ranch, CO
Tue Mar 9, 2010
Yes you could, Like some of the other answers stated. Does your Mom have a Mortgage on the home?
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Brian Burke, Agent, Highlands Ranch, CO
Tue Mar 9, 2010
Yes you could, Like some of the other answers stated. Does your Mom have a Mortgage on the home?
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Don Tepper, Agent, Burke, VA
Tue Mar 9, 2010
Don't overcomplicate the issue.

Sure, you can buy her home without a downpayment. It's easy.

There's no law that says you have to apply somewhere for a mortgage. Just make it a private transaction between you and her.

Basically, she'd be the "bank." There'd be a mortgage, but every month you'd just pay her. She could sell it to you for whatever she wanted--$280,000 for a home valued at $330,000 is fine. Just running the numbers quickly, on a 30 year mortgage at 6%, you'd pay her $1,679 (principle and interest). You'd also be responsible for the property taxes. And that'd be with no money down; she'd create a $280,000 mortgage.

If you sold your current house, the question would be how much equity do you have, and how much of that would you plan on using for a downpayment? If your mom agrees, you don't need any downpayment. But let's say you put 10% down. So you'd be finanncing $252,000. In that case, at 6%, 30 years, you'd pay her $1,511 every month.

So, unless she wants all her cash up front, don't hassle with getting a mortgage from somewhere else. Save all the junk fees and unnecessary expenses. You'll probably have some costs--most jurisdictions usually have some transfer tax. But just go to a good real estate lawyer and he/she can draw up all the papers.

Also, your mom should check with an accountant regarding all the tax implications that might be involved.

Hope that helps.
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Ethan Besser, Agent, Cherry Hills Village, CO
Tue Mar 9, 2010
Hi Canada_girl,
Thanks for your question. If your deal is International, you should be speaking with a real estate agent and lender who specilaizes in that. I would be glad to put you in touch with both broker and lender if you would like me to.

Also, if you have a house to sell in Denver, I would be glad to give you a FREE consultaion and professional opinion about the value of your home. Call me at 303-856-8980 as I would be glad to help you with that.

Best regards,

Ethan Besser
Broker Associate
Keller Williams - DTC
Cell: 303.856.8980
Fax: 303.221.2289

The Besser Choice in Real Estate!
0 votes
Carole Higgi…, Agent, Suttons Bay, MI
Tue Mar 9, 2010
US lenders don't allow the seller to offer down payment assistance anymore. If you are using an FHA loan the downpayment can be gifted from a family member but given that the seller is your mom this would likely be considered a non-arms length transfer, and the rules will be different. You should check with your lender and see what is allowed. And if your mom is not allowed to gift you the money you could explore other options. In the United States US Bank has a program that may allow a buyer to purchase a home with as little as $500 down and Key Bank has a 100% program. Get creative look around for soem different programs
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