Is there any way to buy a house from your parents and avoid the downpayment from a loan company?

Question

He's trying to sell it to me at a discount, his loan will be paid off in 2 years, How do I avoid the downpayment on my loan?

Answer 1

Depending on the loan, they could give you money as a gift. Also if you have decent credit you can do 100% financing with NO money down.

Answer 2

Many people are saying it but I am going to make it more clear. If your loan requires a 10% downpayment and let's say hypothetic. the house is $100k. Have your parents draw up a note for $10k and your lender finance the other $90k. Also have your parents pay closing costs up to max the lender will allow. If your lender allows 6% and is only charging 5% of the sales price for closing then try to put some extra things in there -- appraisal, insurance, home warranty to use up this entire credit. Better spread out over 30 yrs than on your visa/mastercard. So now the trick will be coming up with a fair sales price. You can ask a realtor or do the legwork yourself. Zillow.com is okay I tested it on my own home but it looks at all homes sold in the market so foreclosures will be figured into that amount too. An appraiser will only look at like properties. Maybe take the zillow amount and the appraisal amount divide by 2 and make that the sales price (provided it pays off parents loan to provide clear title). Good luck!

Answer 3

From a lawyer. You can make any type of agreement you want with your parents and buy the house. To be enforceable it must be in writing so you should get a lawyer to draw the papers but don't pay more than $150.00. Lots of lawyers advertise so shop around and don't be bashful about negotiating with them. Tell them you will only pay this much and walk away if they won't agree to take it. Warning: You should not file your deed or other legal documents on the house until after it is paid off or your parents mortgage company may call the note and foreclose if they transfer title to you without the mortgage companies approval. Don't ask for their approval because they won't give it. They won't foreclose if they don't know about it so just don't file the papers with the county clerks office. Hold onto them until the house is paid off. Another issue is insurance. If your parents move out and you move in they must tell the insurance company about this but don't tell the insurance company about the change in ownership. As far as they're concerned you're renting. Another idea is to do a rental/purchase agreement with your parents. The mortgage company can't say anything about your parents renting their house to anyone. Talk to a lawyer in your state about this. He will probably talk to you for free over the phone or through email and be sure to tell him all you can pay is $150 for the whole deal. You will not be able to claim any tax deduction for taxes and interest until the house is legally in your name and out of your parents name so for the two years, they get the deduct not you.

Answer 4

Your best bet would be a lease option. In other words, lease the home from your parents for 12 months with the option to buy at the end of the 12 month period. Make sure you pay your parents with a check every month and keep copies because you will need them at the end of the 12 month period. At that point, your home loan will be treated like a refinance. In other words, your money down will be very minimal if anything at all.

Answer 5

If you purchase the property from your parents and they carry the papers you can avoid a down payment. they could quick deed the place to you and you could take out a second to pay the balance....Good Luck

Answer 6

Get your parents to equity from the house as gift to you and should work out , good luck

Answer 7

Have your parents gift you the down payment amount, this should be done through equity of the home.