Thread: Mortgage/Financing Help for my First Home- ATTN Realtors/Bankers

Refrence the BASIC RUNDOWN @SWM & @Dr. Handsome

It cannot be any simpler.

Originally Posted by DialM

OK, I understand now. Here is what you do: your mom quitclaims her interest to you, then you do a cash-out financing and pay her. You also need to consult an accountant about how to classify the transfer and the affects on your basis. You may want to have her gift a portion to you for tax purposes. Be aware that the transaction may trigger a reassessment depending on where the house is located.

This sounds like exactly what I need to happen.

So basically she will give up her name on the deed, the bank with give me cash against the house. She is paid her money back and I assume the payments.

Are cash-out options a good choice when it comes to interest rates?

I guess my best bet is to just consult a realtor & my bank.

The transaction will be much more simple if she quitclaims out before you apply for the loan. MUCH. Cash out won't cost much more, but the LTV will be considerably lower. Since you only need around 50% (using your numbers) to pay her back, it should be simple. You may run into a problem of having a loan that is too small. The fixed costs of origination make lenders not want to do a $55,000 loan, and these costs to the borrower are excessive, in percentage terms.

Do not involve a realtard.

Originally Posted by DialM

The transaction will be much more simple if she quitclaims out before you apply for the loan. MUCH. Cash out won't cost much more, but the LTV will be considerably lower. Since you only need around 50% (using your numbers) to pay her back, it should be simple. You may run into a problem of having a loan that is too small. The fixed costs of origination make lenders not want to do a $55,000 loan, and these costs to the borrower are excessive, in percentage terms.

Do not involve a realtard.

Agreed and +1 for realtard.

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