Son renting in CA. To buy property in parents name for son. Parents renting in MD. Also want retirement home in CA within 1 year of son purchase.

Asked by Williamcfrancissr, Newport Beach, CA Mon Aug 27, 2012


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Mina Mullinax’s answer
Mina Mullinax, , Newport Beach, CA
Mon Aug 27, 2012
1st question: When you buy your retirement home do you plan to move to California and live in the retirement property or are you going to continue to rent in MD and go back and fourth between MD and Ca?

2nd Question: Is your son in school in California?

The reason I ask is because some loan programs would allow you to purchase a home for your son and you would both be on the title if he was in school. Otherwise, if you plan to buy your retirement home in California and go back and fourth between Ca and MD then it would make your sons home an investment property - and your retirement home a vacation property. However, if you plan to purchase AND live full time in California then the best option would be your home as a owner occupied home and your sons home as an investment property.

Please contact me for further information on this subject. There are many many options you could do depending on your situation.
2 votes
Soila Thomps…, Agent, San Diego, CA
Mon Aug 27, 2012
Cash is best - What are you prepared to pay? and in what areas. Call me to buy in Orange County and the Desert areas. The Palm Springs/La Quinta area is world renowned for the weather and the proliferation of retirement communities and Golf courses. Here is a link to Sun City ...absolutely lovely.

Soila Thompson
Buyers Agent
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2 votes
Sharon Paxson, Agent, Del Mar, CA
Sun Oct 7, 2012
Contact a local professional to show you around and educate you about the communities, and also discuss your financing options with a lender. If you need a professional, I can refer one to you.

Let me know if I can help.
1 vote
Lori Hanson, Agent, Aliso Viejo, CA
Mon Aug 27, 2012
There are so many options it would be best to decide what sort of property you are looking for for both parties involved, how much money you have for down payments and what works best for a retirement home within the years time frame. If you are looking to buy something in a retirement community then there are variables there also. It would be best to first meet with a lender and discuss what you are trying to accomplish and the time frame for them to guide you in what to do. I would be happy to talk with you further and recommend a couple of great lenders to you to help you in your process going forward.

Lori Hanson
OC Homes Realty
714-585-5236 Cell
DRE 01405146
1 vote
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Mon Aug 27, 2012
Yes! You may purchase a home in CA with your son's name.
We would have him be the principal on the loan. From the inception of the loan, we would have your son make the payments from his own account. As long as we can show that he has been making the payments (and on time), then that payment will not be counted against you when you go to purchase your retirement home.
If your son is a student, you may also utilize his name on the loan to purchase as an owner occupied. Thus you can get into the property with ownwer occupied rates and owner occupied terms.
Best methods of finance would depend on down payment, etc.
If you could send more details, I could point you in the proper direction!! :)
1 vote
Claudia: Purchase of son's condo/townhouse in CA would be titled in our name.(parents) We would put down 25% and also hold 30 year mortage for balance in our name. He is a part time student trying to achieve independance - his income and resouces are inadequate for purchase and will be for some time. WE do not want him to continue with rent.
We also want to buy a condo/townhouse for ourselves in CA. We would put down 25% and also hold 30 year mortage for balance in our name.
Given the flexibility of timing which should be done first - son or us. Ours with a second mortgage for his? Both at same time as both 1st mortgages. His set up as rental property? (His payments would be less than PITI?) Other???? TY Bill
Flag Mon Aug 27, 2012
Connie Bramb…, Agent, Rancho Cucamonga, CA
Mon Aug 27, 2012
Hi William,
Yes you can help your son purchase a home in CA. If you go FHA with him on the title you can co-sign with him and not live in the home. This would require 3.5% minimum down payment. If you do not want him on title with you, then you would need to go Conventional Loan with about 25% down as an investment property. In this case you would have to qualify for a portion of the loan. Unless the rent in the area is way more than the payment. 70% of the rent will be considered as income to you to help you qualify for the loan.
I work in the North Orange County and Riverside County area.
If I can help you out please give me a call,
Connie Bramble
Prudential CA Realty
1 vote
Brian Wilson, Agent, Laguna Beach, CA
Mon Aug 27, 2012
Hello William,

There are many questions to ask you to give you the best order of your purchases but without much other information I would say you would want to locate your son's place first. If you want your retirement home to be near his house you may want to see what areas you would like and focus on a radius of those or not worry too much about that and find a home that suits you best knowing you will be much closer that you are currently.

Regarding financing; the interest rates are great right now whether you are purchasing as an investment or a primary residence. Would you be willing to put your son on title? I would refer you to a lender or two so you can further determine the best options for your situation.

If I can be of assistance to you and your family please feel free to contact me and I will help you locate and secure a home for your son to start your relocation.

Good luck with your search,
Brian Wilson, Realtor
DRE# 01321478
1 vote
Felix Hung, Agent, Huntington Beach, CA
Mon Aug 27, 2012
William C Francis Sr,

If you qualify for the mortgage, you can buy it as a 2nd home for the best rates. Then your son can live in it...until he can buy his own or until you retire and move out there. Do you live in Montgomery County? I'm from Fairfax VA originally.

How soon do you want to do this? When will you be retiring? Are you thinking of helping your son buy and then also buying a retirement home for yourselves soon after?
1 vote
Ron Legarski, Agent, Irvine, CA
Mon Aug 27, 2012

Please contact my partner Dan Somers at toll free 888.664.8204 and let him know that Ron directed you from the Trulia Q&A. Dan can assist you further.


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1 vote
Pier Warmuth, , Newport Beach, CA
Wed Sep 12, 2012
Decide what area you would like to live, find an agent in that area and then allow them to help you with order and financing. Things can vary depending upon your preffrences.
0 votes
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