Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
how to transfer a family loan into a mortgage?
I want to buy a house and I'm wondering if there is any way I can transfer a family loan to the mortgage. After being approved I can buy a house but if you can offer cash prices are better. I'm wondering if there is any way I can use cash from a family member to buy the house then pay them back with a loan or mortgage? Meaning get the money from a 30 year loan/mortgage and pay them back.
They have the funds to buy it up front. But I can get a mortgage. I could get the house cheaper if I can offer cash. In any matter a mortgage is needed so is there a better way to do this so I can work a large loan into the mortgage to pay someone back for the purchase of the house?
Thanks
Clarification, I get the house today with their money because of cash purchase. But I set up the mortgage payment for the house a few months after purchase and get the bulk chunk to pay them back their entire amount from the bank just like if I was going to pay the seller. Is this possible? Websites say no.
Example. I want to get mortgage for $200000 6 months from purchase date and pay family member who gives me $200000 cash for house purchase today. Pay them the $ the bank gives to pay seller
3 Answers
- A HunchLv 73 years ago
If you can get a family member to do this for you, there is no law against doing this.
If you can get someone to do this, I imagine that they would request being on the deed until you pay them back.
I doubt many people would go for this.
- L. E. GantLv 73 years ago
First, it's unlikely that you would get the house cheaper if you offer cash, at least not significantly so. Remember, they still have to pay the real estate commission, lawyer's conveyance fees and so on. Plus they probably need to have enough for their own new house.
That said, having the cash can mean that you have fewer conditions in your offer, so settlement can be faster. Which can make the offer more attractive.
The thing with mortgages is that banks (and other lenders) prefer that you have a substantial amount of equity in the house you buy. I don't know where you are, but the amount of equity can be up to 20% of the value.
Maybe the best way would be to buy the house with your family money, then take out the mortgage (as much as you can get), pay them the mortgage loan amount and owe them the rest (with a good schedule to pay them back -- we bought our first house in a similar manner.
- Anonymous3 years ago
The seller is interested in getting his/her market value.
HOW you got the money is not their concern.
A Mortgage is merely an extremely long lived Loan, using the value of the property as the collateral.
IF you can get a family member to agree to the loan there is no problem.
I suggest an attorney draw up the loan agreement to avoid future problems.
