Im trying to make a deal with my aunt to buy her home, Im trying a lease option or hard $? Will it make a difference being on title before trying to get a loan? for a purchase or with being on title for a poss refi. I think i can do either but Lender is telling me it doesnt matter on title or not.
RMV $200k purchase price $140k She owes $85k Wanting to flip an plan b sub lease.
For you to be able to refinance that loan you have to be currently obligated on the note. If you just plan on flipping the property you need to have her sign a warranty deed adding you to the title. If you plan to occupy it as your primary residence you could have her give you a gift of equity as your down payment.
Typically in this situation if you want to refi instead of doing a purchase loan, the lender will require that you have a “vested interest” in the property. That usually means that you are on title AND can document a min of 12 mos payments with cancelled checks.
If this were me, I might get on title with my Aunt and then do a sandwich lease option. That way you don’t need new financing. Unless your Aunt wants cash now and even in that case I would have HER do the refi to get her cash, then add you to title for the sandwich.
Mmmm… sandwiches. :biggrin
Sandwich, I like it. Thanks for the thoughts.