and I need 20% down
but I only have 3%
Can he knock off the $ down and say it is cash/gift for me to get a loan?
2007-07-31 08:26:11 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I think I know where you're going with this. You want to know if your dad can give you the 20% cash for the down payment, so you can qualify for a loan at 80% LT (loan to value).
Why dosn't your dad just sell you the house for 80% of what it's worth? If the house has been appraised for, say $200,000, the loan company will loan you up to 80% of the appraised value. So, if your dad sells the house to you for $160,000 and that's the amount of the mortgage you take out, it's still 80% LTV. So, you don't have to come up with a down payment.
The loan companies don't care how much you buy a house for. They're just concerned about the appraised value of the house. If the appraised value of a house is $200,000 and you want to buy it for $300,000, they'll give you a loan for up to $160,000 (80% LTV). If you default, they'll still foreclose, put the house up for auction, and get their money back. How you come up with the rest of the money (and why you would buy a home for $150% of what it's worth) is your business.
2007-07-31 09:22:26 · answer #1 · answered by Paul in San Diego 7 · 1⤊ 0⤋
Just try get a mortgage for 80% of the full price and see what they say
2007-07-31 08:31:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most likley...each state is different. Talk with a Lender who can adivse you as to the best way to afford the home...
2007-07-31 08:34:18 · answer #3 · answered by Toots 6 · 0⤊ 0⤋
you have different options....
100% financing
80-10-10
80-15-5
2007-07-31 08:35:55 · answer #4 · answered by n10zguy 3 · 0⤊ 1⤋
He can if you do an FHA loan.
2007-07-31 08:33:26 · answer #5 · answered by Anonymous · 1⤊ 0⤋