my mom offered to buy us a home but how will that work. She doesn't live here in SA. But we will be making the payment.

Asked by Audrey, San Antonio Tierra Del Sol, San Antonio, TX Mon Nov 5, 2012

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Maria Cipollone’s answer
Maria Cipoll…, Agent, Coral Springs, FL
Tue Nov 6, 2012
This is a common practice. Parents want to help their kids with the purchase of their first home. Shop around for a reliable real estate agent, he/she can guide you, help you in understanding different financing options, identifying qualified lenders and recommend responsible professionals that you need to finished this transaction sucessfully.

Best of Luck,

Maria Cipollone

Century 21 Tenace
3 votes
, ,
Tue Nov 6, 2012
FHA will allow your mother to co-mortgage with you on a home that you would occupy, even though she wouldn't be living in it. The down payment is only 3.5%, rather than the usual 20-25% down for an investment property. You might not be able to qualify on your own right now, but in the future you could submit another credit package to your lender once your income becomes more stable. They would then release her from the loan, and you'd just be the only one liable for it. If you would like more information on this program, call me at 210--842-4185. I have been making home mortgages in Texas for 29 years, and I'd be honored to help you.

Barbara Coker
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas
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1 vote
As a real estate agent and a Mom, I see nothing wrong with this if it is done as Barbara describes. There are many good reasons for parents to help their children, with good outcomes. Audrey and her husband just need to find a good agent and lender who has experience in this type of transaction.
Flag Sat Nov 10, 2012
....and during the time when mom is on the note, she'll be 100% responsible for it as well as the others on the note. Not a smart plan for mom.
Flag Tue Nov 6, 2012
Terri Russo, Agent, San Antonio, TX
Wed Nov 7, 2012
Audrey- you need a loan opfficer and an attorney. I recommend getting you credit ready to originate your own loan, 90 days to one year, and executing a binding agreement to take title to the property after you do this and then take title from your mom.

The bank who makes a loan to her will not allow her to give title to anyone else without triggering a "due on sale" clause and they can foreclose on her.

Please be careful. You need an attorney. I recommend Dan Brown, he is also an Escrow Officer with Mission Title and will protect your rights and your moms rights.

Call me for more information. Terri Russo,
Home Team 210-385-0305
0 votes
Jon Griffith, Agent, Scottsdale, AZ
Tue Nov 6, 2012
A. Cosigning for family members is a really bad idea.
B. If your mom buys the home, she'll also be the one who borrows against it. That means she'll own the home and be 100% responsible for making the payment.
C. If your mom quit claims the house into your name after securing a note with a lender, she will be in breach of the note and the bank could call the note in full.

A. Again, having family members loan you money is a really bad way to live.
0 votes
Thank you for your opinion. please don't respond anymore!
Flag Tue Nov 6, 2012
Audrey, , San Antonio Tierra Del Sol, San Antonio, TX
Tue Nov 6, 2012
What does this mean having all of you on the home, but only her on the loan?
0 votes
Audrey, , San Antonio Tierra Del Sol, San Antonio, TX
Tue Nov 6, 2012
We pay to much in rent and to rent from other is still crazy. We don't have the credit but have the money. And she offered to help the home will be in her name only. But we will be making the payments.
0 votes
Audrey, , San Antonio Tierra Del Sol, San Antonio, TX
Tue Nov 6, 2012
Hello, this will be a secondary home for her. She owns her house already and we will be making the payments until we can just pay cash for the home from her. So is their anyway to go fha so down payment isn't so large.
0 votes
Jose Novelo, Agent, San Antonio, TX
Tue Nov 6, 2012
Great! that is a Big Blessing. Let's find your next Home at
0 votes
Vino Alonzo, , San Antonio, TX
Tue Nov 6, 2012
Hi Audrey,

Yes, this is possible, but we have to be clear about how to set up the loan. When buying a home, as lenders, we have to determine occupancy. By occupancy, I the home going to be the buyer's primary residence, second home or investment property. These three categories determine the down payment and other important factors that you have to be aware of before entering into a contract. I have been a Loan Officer for 13 years in San Antonio and can help guide you. I also have a team of excellent real estate agents that can assist you with your home search.

Please call me so we can discuss your next move.

Vino Alonzo
Loan Officer
Castle & Cooke Mortgage, LLC
210-685-7642 (cell)
0 votes
Terri Russo, Agent, San Antonio, TX
Tue Nov 6, 2012
Lots of Parents do this. The first thing she need is a local Mortgage Professional in Texas to advise her about the rules for an investment property. I highly recommend Adriana Mills at Pilgrim Mortgage. 2102748522 or email her Once your moms loan is secure then we go house hunting here in San Antonio. We send her lots of photos and talk lots on the phone LOL. The paperwork gets emailed and we make sure we are in close contact at all times. I am happy to help a family like yours!

Please call,

Terri Russo
Home Team of America
0 votes
Marty Shields, Agent, San Antonio, TX
Tue Nov 6, 2012
Well all of the financing will be done by her. How and who mae the payments is between you and your mother. There should be some type of agreement as to how and when you will tae ownership.

Too many variables to give you a good answer.

Call me so we can talk and I can better answer your qusetion.

Marty Shields
0 votes
Bruce Lynn, Agent, Coppell, TX
Tue Nov 6, 2012
She will need to get an investment loan with like 20-25% down payment and have excellent credit and reserves. She just needs to get with a loan officer to see if this is possible.

I highly recommend against this. It just creates all kind of headaches down the road in so many cases. If you want to buy a house do it on your own. If she wants to help gift you the down payment, that might be an option.
0 votes
Sue Baillio, Agent, San Antonio, TX
Tue Nov 6, 2012
This is a great idea to help a family get started in a home of their own, your Mom is so generous! There are several successful options for this situation. Buying the home with cash is the easiest but finacing options are available as well. If you do not already have a lender to work with I wll be happy to introduce you to someone who can offer you the best programs out there for this type of sale.

Please contact me with additional information so we can start working on this for you soon. Would you like to be in your new home by Christmas? It can be done!

0 votes
Pam Rothe, Agent, San Antonio, TX
Tue Nov 6, 2012
Hi Audrey,

How sweet of your mom! She will be the co-signer of your next home and basically the main owner. I just helped a young couple do the same thing. Will she be financing or paying cash? I know an experienced lender that could assist with that as well if needed. After figuring out what price range and location you want to preview properties at and get to the point of closing, she could either fly down and be at closing with you, or you can get POA (Power of Attorney) forms filled out to sign of her behalf, or get a notary to assist with closing where she is at.

It's really a quite simple process! I'd be happy to help with any more questions on how to get started. Feel free to give me a call at your convenience.

Good luck!

Best Regards,

Pamela Rothe, REALTOR, CNE
Keller Williams Realty
210.861.7350 - Direct Line
0 votes
Kathy Walsh, Agent, San Antonio, TX
Mon Nov 5, 2012
Hi Audrey,
If she will be buying the house, her name will be on the deed and all other documents, and of course she is ultimately responsible for the home. Will she be taking out a mortgage? If so, lenders may have different requirements (i.e. down payment, interest rates, etc.) for owners who are not planning to occupy the home. She would probably need to qualify for the mortgage without your income being counted.
If you want to ultimately own the home in your name, then you would need to set it up with an attorney. It might be something like a long-term lease-to-own arrangement, but the attorney should be able to tailor it to protect you both and hopefully prevent any misunderstandings within your family. Make sure you find an attorney who is experienced in real estate law.
Best of luck to you!

Kathy Walsh, Realtor®
Keller Williams Heritage
(210) 862-7721
0 votes
Dan Tabit, Agent, Issaquah, WA
Mon Nov 5, 2012
Your mom is very generous. There are various ways to set this up; a good Mortgage Broker can discuss the options. Some possibilities would include having all of you on the home, but only her on the loan; having only her on both; gifting you the down payment and setting everything up in your name if you qualify and having her either make the payments directly or pay you so you can pay the mortgage.
Each option will depend on many factors we don't know yet. If she is buying in her name because you wouldn't qualify it will likely have to be a purchase as a second home or investment property. The mortgage lender can look at her situation and explain the options.
If financing is not an issue and she plans to pay cash, it will strictly come down to how you want the ownership to appear. If this is the case, a talk with an accountant may be a good idea too.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Mon Nov 5, 2012
Hi Audrey,

If she is going to finance it (not pay all cash), make sure you consult a Real Estate Attorney to set everything up the way you all want it. I know she's your Mother you want to make sure to protect yourself and have her be protected too. I have seen several instances where families are torn apart because things aren't 'spelled out' clearly and IN WRITING.

Good luck.

Shanna Rogers
SR Realty
0 votes
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