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jfink46
224 Posts |
 Posted - 08/06/2008 : 08:58:47 AM
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I have a client that is renting a home from her father, even though she is on title to the property. Now she and her husband want to rent the home and will be getting 20% down from gift of equity, from the father.
Has anyone had anything like this before? Do I do it as a purchase with gift of equity from the parents, or is it a rate/term refinance because the daughter is already on title?
Thanks in advance... |
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just in kase
100 Posts |
Posted - 08/06/2008 : 09:07:48 AM
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purchase - she all ready is on title maybe problem.
can not do refi conventional, unless father is on the new note along with daughter. but may have non-occ co-brw issues at that time.
FHA may be possibale as refi, how long has she been on title?
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mortgagewithme
117 Posts |
Posted - 08/06/2008 : 09:08:37 AM
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| I'm assuming you mean they want to buy out father so it is in their names, correct? If so, and she has been on title for at least 12 months then do it as an FHA refi so you can use gift of equity towards dp requirement and clsg costs. This way they shouldn't need to bring cash to closing |
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liverichly
3674 Posts |
Posted - 08/06/2008 : 09:09:04 AM
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| Remove daughter from title and then proceed as a purchase. Run it by your account executive first. |
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nowbroker
1107 Posts |
Posted - 08/06/2008 : 09:14:14 AM
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quote:
I have a client that is renting a home from her father, even though she is on title to the property. Now she and her husband want to rent the home and will be getting 20% down from gift of equity, from the father.
Does this mean they have lived there in the past as renters, and NOW they want to buy it and rent it out to another party? |
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jfink46
224 Posts |
Posted - 08/06/2008 : 09:15:53 AM
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| They are buying it and going to live in it, basically buying out the father. |
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247lender
52 Posts |
Posted - 08/06/2008 : 11:57:06 AM
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| my experience has been that this is a lender-specific question/answer. some may want to see it as a refi and others as a purchase -- i agree with shane -- run it by your ae, at least, before you move forward. |
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lemeuss
277 Posts |
Posted - 08/06/2008 : 12:43:11 PM
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quote:
Originally posted by 247lender
my experience has been that this is a lender-specific question/answer. some may want to see it as a refi and others as a purchase -- i agree with shane -- run it by your ae, at least, before you move forward.
exactly correct....its a lender by lender thing, definitely do-able though |
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