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How do you transfer a mortgage over to a family member. Because of life changes, turning our house over to daughter and family

by locke603450 from , California. Apr 20th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

You cannot simply "Transfer" a loan over to a family member.. Doing so would trigger the "Due on Sale" clause in your agreement. The assumable with No-Qualifying mortgage was last done in 1988.. since then, most government loans are assumable With Qualifying.. and for qualifying purposes, it's no different then if they went and bought a home.. they would still need to meet all eligibility requirements.. You can however ADD them to your deed.. For most all lenders out there, this will not be a trigger. (contact your loan servicer to be sure before doing this).. However, if you deed the property to your daughter, and you remove yourself.. then that will cause a trigger.. so you can add someone to the deed, so long as you don't remove anyone.. you should be ok.. Otherwise, they could buy the property from you for the outstanding balance, and you would be giving them a gift of equity.. this is allowed for "arms length" transactions.. Contact a local mortgage broker for more details.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Apr 21st 2016
Crestico Funding (CresticoFunding)
#314 ranked lender in California - 340 contributions

Gift of Equity is one option to transfer the property and liability to a family member. your daughter has to go through standard mortgage qualification process to make sure she is able to replay the loan. If you have any more questions please feel free to contact our office and speak with one our Sr. Mortgage Advisors.

Apr 21st 2016
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