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Is there any way I can help my girlfriend buy her first house?

My girlfriend is interested in buying herself a house, and I would like to help her out somehow as I am in quite a better financial position than she is. We aren't moving in together yet, but I wouldn't be opposed to being legally linked to the house as long as there was an easy way to get out of it. Is there a way to do this? We live in Texas. by Jonno19 from Dallas, Texas. May 28th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

It should not be a problem, but to be sure, you should contact contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. 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. 480-287-5714 WilliamAcres.com

May 28th 2013
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William Crawford (AspireLending)
#71 ranked lender in Texas - 6 contributions

Depending on what you are attempting to accomplish in terms of loan program, down payment amount, etc., there are in fact several options available to you. The important thing is to make sure that the loan is properly structured so that the property that your girlfriend is purchasing is not considered to be a "investment property" for underwriting purposes, which could lead to a much higher interest rate and fees. Given that your girlfriend will be occupying the property, there is no reason to have the property classified this way in order for you to accomplish what it is that you are trying to do.My name is William Crawford, and I am the Branch Manager of Aspire Lending here locally in the DFW area. I would be more than happy to review all of your options with you, of course with no obligation to you. I can be reached directly at 817-203-2200

May 28th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

Getting in may be easier than getting out. You could qualify on your own and buy the house in the name of a land trust, making her a revocable beneficiary; or, give her a large down payment, so she could qualify on her own income and credit; or, obtain a 25% down non-owner occupied loan. All of these have serious risk, if your relationship should sour.

May 28th 2013
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Eric Blossman NMLS 211144 (eblossman)
#116 ranked lender in Texas - 63 contributions

Since you are not married nor related, then we couldn't do it as a "non-occupant co borrower". So that leaves really three options. 1. She buys on her own as an owner occupied property 2. You can purchase together as a non owner occupied property. 3. You move into the property with her and purchase together as an owner occupied property. Any of these options can be accomodated provided that the borrower's on the loan meet the standard credit criteria. As far as an "easy way to get out of it", there is really only selling it or having her refinance the property by herself deeding you off.

May 28th 2013
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Brad Cahoone (info@globalhomefinance.com)
#90 ranked lender in Texas - 1,042 contributions

Good morning. This is most likely a phone conversation as the answers to your question should raise more questions. The rate is not much higher with us going investment property under your name with a convenitonal loan. You would have to evict your girlfriend if things go south as William Crawford is describing below and you would own the home and have to sell it or rent to someone else. Additionally you are going to have to put about 25% down. I am not sure the way that Paul is describing. If it is FHA non-occupant co-borrower that is supposed to be a family relationship to go to 96.5% LTV. You would go back to the 75% to be a non-relative non-occupying co-borrower per the 4155 Handbook. Please call me on this as you should be asking more questions about vesting on title and possibly going conventional and See below for straight from the FHA handbook guideline:When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% loan-to-value (LTV). However, maximum financing, as described in HUD 4155.1 2.A.2, is available for o borrowers related by blood, marriage, or law, such as - spouses - parents-children - siblings - stepchildren - aunts-uncles, and - nieces-nephews, or o unrelated individuals who can document evidence of a longstanding, substantial family-type relationship not arising out of the loan transaction. - Brad Cahoone - bcahoone@globalhomefinance.com - 972-724-3222 x 227 - http://globalhomefinance.com/apply.php

May 28th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 314 contributions

Give her a gift

May 28th 2013
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Steven Cook (stcookmortgage@gmail.com)
#38 ranked lender in Washington - 256 contributions

Mazzola has the right idea -- that you could gift her the funds she needs for her down payment and some of the closing costs. The thing is, that the gift might raise questions if not done properly. Please talk to a local Licensed Mortgage officer to get the best advice on how to properly proceed.

May 28th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,166 contributions

The two most common ways would be to provide down payment assistance. The second way would be to be a joint owner of the home. If things don't work out down the line, there are a few options to "get out". 1) Sell the home. 2) Have her refinance the home in only her name. You can also quit claim yourself out of title (legal ownership), but that does not release you from the liability of the mortgage itself.

May 29th 2013
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Jim Bombastic (Jim.bombastic)
#109 ranked lender in New York - 2 contributions

Unless you are planning to marry this girl, I would say try to protect yourself legally as much as you can. I am a firm believe in not mixing business and family members or your significant other unless you are legally married.To be legally linked to the property you would have to be a co-borrower.Alternative option that nobody has mentioned yet, is that you give her a loan. Of course this would have to be official and counted against her as a liability when qualifying for a loan. You would have to draft a promissory note and set the interest rate, allowed term of repayment etc. If you really trust her and see a future with her, just apply as a co- borrower for an owner occupied property. Or you could "gift" her the money. But then you aren't really putting any legal guarantees that she will ever repay you the gift money for the downpayment if you guys ever split up.

May 29th 2013
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