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Can I obtain a mortgage for just 400,000 and pay my parents the remainder 300,000 when I sell the house in the future? They are ok with the idea. Just dont know the legality of it.

2007-05-31 09:19:51 · 4 answers · asked by Michael 2 in Business & Finance Renting & Real Estate

4 answers

Yes, you can do this, but be sure to enter into a legal contract with your parents as well to repay this money at a future date. Failure to do so may trigger the IRS into considering the $300K a gift from your parents, and they would incur a gift tax in that situation.

2007-05-31 09:23:20 · answer #1 · answered by acermill 7 · 0 0

If your parents currently have a mortgag on the home, you have a better option. Just have them sign the mortgage over to you. Then take over the payments. If you parents want money right away for the house, you can then easily refinance or take out a heloc to pay them off. The house is then yours to sell.

2007-05-31 18:47:18 · answer #2 · answered by Ron B 3 · 0 0

Only if the house is compleatly paid for. If there is a mortgage for more than what you are offering to buy it for then that would mean the bank would need to agree to a short sale. Thoes are very difficult and it is unlikly the bank would do it.

2007-05-31 16:24:47 · answer #3 · answered by Anonymous · 0 0

Parents can only forgive a 95,000 loan. You will have to pay them back and sign a contract.

2007-05-31 16:55:19 · answer #4 · answered by jcrichton33 3 · 0 0

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