what is the easiest way to purchase a home from a family member?

Question

I have lived in my current residence for the past 8 years just renting, from my sister who owns the house. I am now trying to purchase the house with my son as a co-signer., due to my poor credit and low income. What are some steps and procedures that would be the easiest way to obtain ownership. Can anyone elaborate on what it is to assume a mortgage or assume a loan, I 'm not sure which is correct. Please help.

Answer 1

You may only assume a mortgage with the agreement of the lender who provided the original mortgage. Since there is a transfer of liability as to who is responsible for making the payments, expect the lender to run a credit check on you before agreeing to any assumption agreement.

If your son co-signs and has adequate income and credit checks, you may be able to assume the existing mortgage (if it was originally written as assumable by another party.)

If the mortgage is not assumable in any way, you will need to obtain financing conventionally, just as if you were purchasing a different house with a new loan.