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/u/willias1
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Will try to summarize as this topic has been covered but I think our situation brings a bit more nuance to the table.
My In-Laws have offered to purchase a house in cash for my wife and I as a way to place a attractive offer on a house in a competitive market. We would plan on obtaining a mortgage to then purchase the home from them (I understand this leads to multiple closings, duplicate costs, etc.)
However, I recently left corporate america and bought a business (within the past 6 months). It is recent enough that the mortgage lender won't consider my income as a part of the mortgage application, and without it the mortgage we would qualify for is lesser than the total value of the home. This leaves us at a gap for what we can obtain for a mortgage to buy said home.
We have a great family dynamic and my In laws have assured us that we'll "work it out" and it won't be a problem, but I'm wondering what our best path forward (least amount of tax implications for FIL + MIL, easiest way for my wife and I to obtain the title, etc.). Would purchasing the home through my in laws via 'land contract' at the value that our mortgage is accepted at be the right move? I.E. they would be immediately selling the house for less than they paid for it. This would also require another set of agreements to make sure we are on the hook to pay back the difference in the purchase value and the land contract value.
It sounds like we could also find a co-signer for the initial mortgage to increase our buying power until my salary is allowed to "count" towards the mortgage, at which case we could add myself and drop the non-occupant co-client/signer.
Any thoughts or tips would be great. The more I learn the more confused I get.
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Family Wants to Help Purchase a Home via Cash
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My In-Laws have offered to purchase a house in cash for my wife and I as a way to place a attractive offer on a house in a competitive market. We would plan on obtaining a mortgage to then purchase the home from them (I understand this leads to multiple closings, duplicate costs, etc.)
However, I recently left corporate america and bought a business (within the past 6 months). It is recent enough that the mortgage lender won't consider my income as a part of the mortgage application, and without it the mortgage we would qualify for is lesser than the total value of the home. This leaves us at a gap for what we can obtain for a mortgage to buy said home.
We have a great family dynamic and my In laws have assured us that we'll "work it out" and it won't be a problem, but I'm wondering what our best path forward (least amount of tax implications for FIL + MIL, easiest way for my wife and I to obtain the title, etc.). Would purchasing the home through my in laws via 'land contract' at the value that our mortgage is accepted at be the right move? I.E. they would be immediately selling the house for less than they paid for it. This would also require another set of agreements to make sure we are on the hook to pay back the difference in the purchase value and the land contract value.
It sounds like we could also find a co-signer for the initial mortgage to increase our buying power until my salary is allowed to "count" towards the mortgage, at which case we could add myself and drop the non-occupant co-client/signer.
Any thoughts or tips would be great. The more I learn the more confused I get.
submitted by /u/willias1
[link] [comments]
Family Wants to Help Purchase a Home via Cash
Continue reading...