- April 30, 2011 at 4:28 am #22549
My parents currently have 2 mortgages on their house and are paying more per month than they can handle. I have been helping them out but we were trying to find out if we could put the house in my name and get a new loan with both mortgages included; which would be around 170k or so. I have already been approved for more than that, since I have much better credit than my parents. What are the possible ways that we could do this? I want to set them up where they can afford the payments, so I can move out, I’m kind of stuck as it is because they can’t afford it.April 30, 2011 at 4:28 am #113288
I’m a real estate paralegal in Ohio so make sure by asking a loan officer if this will fly in Washington. Have your parents put you in title with them. They can do a Quit Claim deed conveying from themselves to them and you. Then you apply for a loan to refinance the property. Ask for enough to cover both mortgages. That should do it. However I really strongly recommend against doing this. I know you love your parents and only want to help them out but if you tie up your credit with this house then you probably won’t qualify for another loan down the road. What if you want to buy your own house or God forbid something happens and you lose your job or become sick. Who is going to help you then? What if something happens to them and they can not pay on this loan that you refinanced for them and then you are stuck paying the mortgage every month. You will ultimately be responsible and not them since your name is on the mortgage. If you want to help your parents why not just agree to help them out financially every month for a set amount of months? Tell them you can afford X amount of dollars for the next 12 months or 16 months (whatever). That will give them time to turn around their credit and refinance the loan themselves. Good luck.April 30, 2011 at 4:28 am #113289
of course you can. Buy the house. I suggest that you buy the house
so that you gain both equitable and legal title and then,
lease them the house for 3 yrs while they get their
credit back up.April 30, 2011 at 4:28 am #113290
You can do this, basically they will be selling you the house.
Of course you have to qualify for a 170k loan based on your own income, debt and credit rating.
This may prevent you from buying a home for yourself, depending on your income level.
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