Forgotten Your Password?

Need to Register?

Question Icon

1st Time Buyer - House is Paid off

My grandmother owns her home out-right and is selling it to me to help me build my credit, for next to nothing ($66,999). I do not have a down payment , FICO is 668, and income is $72k annually, I been at my job since i finished college (7 years) and my debt is about $3900/mo. My CU gave me a few options but I could use some help I. I was advised that we can do a title transfer and cash out refinance, or a gift equity loan. by Stevens222_Global... from Bellemont, Arizona. Jun 21st 2018 Reply


David Kester (davidkester)
#76 ranked lender in Arizona - 23 contributions

The best way to do the loan is a Gift of equity. If you purchase the home at $66,999 it could lower the home prices in your area. Have grandma, sale the house to you at the appraised value and have her provide a gift of equity. My concern is the amount of debt you have and what your Debt to Income (DTI) is at 65% based on what you are saying ($6000 / $3900). If you have a rent payment currently that will be going away, so your DTI may not be that high.

Jun 21st 2018
1
0
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,414 contributions

Much more info needed to answer your question.. First, there are many ways to obtain financing in your scenario.. Just about every lending program out there allows you to purchase from a relative and get a gift of equity.. The bigger problem is your income vs. monthly debt.. Based on the info you provided, you are at 65%, and the most liberal lending program only goes to 56%,, but not to fear.. My guess is you are not calculating your DTI correctly.. I would not advise the title transfer and then a cash out refinance.. that could lead to tax consequences for both you and your grandmother.. Before you do anything, you should contact a local professional *(like me).. and let them analyze your complete loan profile including your debt to income ratios.. it will literally take 5 minutes and you'll know exactly where you stand.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Jun 21st 2018
1
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,754 contributions

If grandma is selling you the house below market, the best route is doing a Gift of Equity. Any good Loan Officer can explain the details of how this works. Secondly, hopefully the numbers you listed contain an error, as what you listed of $6,000 a year and $3900/mo debt would probably get you denied. For gift of equity loans from a relative in WI, MN, or SD, visit me at www.WI-MortgageBroker.com

Jun 22nd 2018
0
0
Subscribe to our news feed.