Family purchase/transfer of Property then refinance.
- My father owns a home in California worth around $75K with balance of $26K- We are homeowners and would like to take ownership through a deed.- Our goal is to take full ownership of the house and refinance the house so that only our names are on the mortgage loan.What is the best way of doing this? by juncbo_975_998 from Sacramento, California. Oct 9th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Contact a local bank or credit union.. Because of the current laws, the broker cannot make enough money on a $26K loan to make a profit.. However the laws only apply to brokers.. The local banks and credit unions can mark up the loan enough to make a profit on it.. Don't' mess with the deed until you talk to the bank first.. you could cause additional delays... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Sarah N. Montes (FUNDINGNOW)
#60 ranked lender in Texas - 13 contributions
Do a Cash Out refinance so you can get a traditional mortgage loan. $50k minimum. Title company will help you with the correcting the deed into your name only.
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
I would recommend using a local community bank and not a credit union. Please read my blog post about the perils of borrowing from a credit union for real estate transactions. The article can be found at this link. https://www.lender411.com/mortgage-articles/4314/dont-borrow-where-you-bank/ ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
I like William's answer above, find a local lender that will handle small loans (most mortgage lenders have a $50,000 or higher minimum) and ask them how to structure it. He is correct, probably a bank or credit union. Some will not let you do a cash out refinance until you have owned the property for 1 year. For that small a loan you might even be able to get a home equity type loan which should have much lower fees than a standard mortgage. Some mortgage options would allow you to purchase the home from him at a below market price and count the discount as a "gift of equity". He should check with a tax advisor to find out if he would pay taxes on the gift.
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
It will be hard to get such a small loan amount. Try a local bank or credit union.
Thank you for all the options so far. I had a feeling there would be minimum loan amounts and loan to values. Given that a $50K-$60K loan would have very manageable monthly payments over 30 years, we would definitely not mind doing a refi-cash out. This is exactly what I look for in a professional. I give you pieces of a formula and with your experience, you figure out what options can be available to me. Thank you! The question now is, what's involved in the deed process?
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions
Try a local credit union.
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