I don't want to use my cash. His mortg. is $1.3MM, My offer is $1.1MM. My current options are: Gift, Assume his mortgage with $200K "down payment" from me. Need help to save cash.
Appraised value is $1.45MM. Trying to make this happen without pain. Please advise.
2007-12-30 14:35:29 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You don't use his cash for your down payment. If your offer is $1.1 Million, and he agrees to sell at this price, then that's what you buy it for. The amount he owes makes ZERO difference to you, as it's what HE owes, not you. You will need to get your own loan and purchase the property. What he owes is his problem.
I'm not sure what your purchase contract looks like, but I'm pretty sure that the Seller will not be wanting to give you amy additional money for a down payment gift.
Now, if you want cash at closing, you may want to up the sales price and have him give you a credit at closing, but I'd check with your lender as to whether or not they'll let you do that.
2007-12-30 15:05:56 · answer #1 · answered by trblmkr30 4 · 0⤊ 0⤋
Let me ask this question. If you have the ability to buy a million dollar house, why are you even asking this question here?
First, you need to make sure that you can assume his mortgage. Usually you can't
Second, he has NO EQUITY. How can you use his money?
No pain. Purchase the house for $1.1, and take with the lender about a 100% loan or something.
2007-12-30 14:59:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Sounds like a short sale to me. You are going to ask the loan company to take less then what is currently owed on the home. If the seller is buying down the mortgage with 200k. to the table this brings the home back up to the 1.3million. I`m still at a loss of where the money will be coming from on the down payment. If it is anything like he will pay your down payment and you can have 200k from him. That is not legal. Please bring more information to us so we all can get a better picture of what you are trying to do.
2007-12-30 15:54:23 · answer #3 · answered by Big Deal Maker 7 · 0⤊ 0⤋
It doesn't matter because you'r enot getting 100% financing on a JUMBO mortgage. The programs no longer exist, so unless you're bringing a serious amount of money to closing for a down payment you're out of luck.
2007-12-30 16:11:01 · answer #4 · answered by Paul C 3 · 0⤊ 0⤋
You CAN'T use this cash. The seller has to give it to the mortgage lender to clear the title and mortgage to the property. Chances are that his mortgage is NOT assumable, and that you will have to provide a mortgage of your own in order to buy the property. YOU have to come up with the full $1.1 million and HE has to come up with $200K in order to pay the mortgage in full. There's nothing left over for YOU to bargain with in any fashion.
2007-12-30 23:19:02 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
So to make sure I understand... You are buying his house for 1.1 million but what you really want to do is assume his mortgage and take his "extra" 200 K...
I am not an expert on this but good luck with that because it just does not work that way.
2007-12-30 14:51:17 · answer #6 · answered by craigblitz 2 · 0⤊ 0⤋
Have him pay down the loan. You want a low purchase price. Some areas base property tax on sales price.
2007-12-30 14:49:05 · answer #7 · answered by Ross 6 · 0⤊ 0⤋
so sorry u done understand the process.
u offer 1.1 , he owes 1.3. u and hewith .2 go to the bank with 1.3 total . they then transfer title to u. only then.
if uneed help to save 'cash' do not buy it.
u'll save lots of money then.
2007-12-30 15:07:07 · answer #8 · answered by Anonymous · 0⤊ 1⤋