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Wish to transfer home into my Son's name

My son is willing to buy one of my homes, it has a mortgage on it still however. His credit is not too good, so I was wondering what would be the best way to get him transferred onto the loan. Should I add him to my existing mortgage, should I refinance the home and make him the primary borrower? What would make the most sense and save the most money for him? by joseph_487_551 from Phoenix, Arizona. Nov 21st 2011 Reply


Ron Pippin (RonPippin)
#26 ranked lender in Utah - 69 contributions

You can transfer him on title simply by executing a Quit Claim Deed. However that would not transfer him onto the loan. If his credit is poor, he may not be able to be on a mortgage until the credit issues are resolved. Without having the required credit score investors will not allow him to be on the loan, even with you co-signing or him. co-signers can make up for lack of income but not lack of credit. Investors will likely require him to have a score of between about 600 to 640. With a large enough down payment (40% to 30%), you can obtain "private money" where credit is not a factor, but the interest rate is usually higher. Long story short, he needs to get is credit lcleaned up to get a mortgage. Let me know if you need info about that

Nov 21st 2011
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Bert Carpenter (BertCarpenter)
#39 ranked lender in Arizona - 1,731 contributions

Unfortunately, If your son's credit is not too good, he may not qualify for a new mortgage with or without you on the loan. Also, it is doubtful that the lender will allow you to add him to the existing loan, regardless of his credit standing. If you just add him to title, that can create another issue, but doesn't get the loan in his name. If however, you come to an agreement, and he begins living in the house, and making all the payments on it and works on cleaning up his credit, he may become loan eligible and the payment history on the existing loan can work in his favor. The best thing for him to do is to sit down with a Mortgage Banker, such as myself to determine exactly how good or bad his credit is. In my experience, many times the credit is not nearly as bad as first thought, and can be easily and quickly brought up to become loan eligible. Give me a call. 480-889-9000 or Toll Free 888-889-9950

Nov 21st 2011
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Mel Simonovich (mel4600)
#10 ranked lender in Wisconsin - 6 contributions

Your son will need to get his credit issues resolved before applying for a mortgage. Once that is done you can sell him the home. As a parent you can give your son an equity gift if there is equity in the home. If you need his credit repaired I have an excellent source for that.

Nov 21st 2011
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Brian Allen (ballen)
#47 ranked lender in Maryland - 104 contributions

Possibly you could consider an installment sale to your son since you are the seller and lender you can be flexible. The History could help your son build his credit when he is capable he can obtain bank financing to buy you out. (Note be sure to ask your tax professional is there are any drawbacks)

Nov 21st 2011
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Heath Symonds (hsymonds)
#83 ranked lender in Arizona - 4 contributions

If you can get your son's credit score between 600 and 640 you might want to consider selling the home to your son and using a 'gift of equity' for his down payment if there is any equity in the home. You can use the equity in the home for his down payment and even cover closing costs. Be careful with transfering title or installment sale. You need to check the 'due on sale clause' on your current note.

Nov 22nd 2011
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 4,629 contributions

Hey Joseph.. You cannot "Add" him to your existing mortgage... if his credit is whack, then your not going to be able to refinance with him as primary or secondary. You can add him to the deed so long as you don't remove yourself. Once he is in the home and has made 12 payments, verified by canceled checks, then he can apply for a new mortgage in his name.. assuming his credit has been restored by then... I'm here locally and would be happy to assist you in getting your son in a position to be approved for a mortgage... WilliamAcres.com

Nov 22nd 2011
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Rudi Hofmann (CaPortfolioLoans)
#204 ranked lender in California - 380 contributions

You can come off title, but you can't come off the loan without paying off the loan. Also, if there is equity involved you may want to speak with your tax advisor about possible tax issues that may not be favorable to you at this time.Most sense: If you want off the loan have a mortgage professional pre-approve your son first. This is called a non-arms length transaction which may cause other financing issues besides your son's current credit standing. .... Happy funding, Rudi

Nov 23rd 2011
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Peter Torneanu (peter@loandoctors.us)
#81 ranked lender in Arizona - 9 contributions

The best option is to get his scores up and have him do a purchase. You can gift him the down payment or do gift of equity. If he has enough income he would be able to do it on his own if not you can co-sign for him. We specialize in loans with low FICO so he can go as low as 580 and we can underwrite it in house. I can help you fix his credit in a very short amount of time. Feel free to call me at 480-289-7607 or email me at Peter@LoanDoctors.usPeter Torneanu

Mar 5th 2012
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The mortgage has been paid off, and I wish to transfer my home to my son. How do I proceed? I live in Washington State

Apr 18th 2013
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