I am purchasing a home from my dad. My husband and I have been in the process of renovating it for the past two years with the help of my dad. It’s almost finished and in about few weeks or so will have its final inspection completed by the city. The home is being sold to us for much less than what it’s (now) worth after renovations. I have never bought a home before and have no idea about anything. Should I start calling my credit union now to start the mortgage process or wait until the house is finished? Are there any incentives to a first time home buyer loan? Is it possible to get closing costs covered or waived? My final question(s) is if there’s anything I might need to know about the home being “gifted” to us since we’re buying it for way less than what it’s worth. My husband’s credit is a no go so we’re mostly relying on mine to complete the purchase but once his credit improves will it be possible to add him on to the mortgage at a later time? Thank you to anyone who has the time to answer some of these.
You are not on the title currently, right? Just under dads name? That is an important factor that could cause speed bumps with mortgage guidelines.
Nope not on the title it’s entirely in his name!
Good! Then you can legitimately purchase the home. A gift of equity is a very simple process. Just a single page form they sign conforming it is a gift. That allows you to avoid making a down payment too which is great. Dad can check with his CPA to make sure there are no unwanted tax implications, but I am confident it will be fine. Pre-approvals last for 120 days and are simple to renew. It’s best to start the process early to help identify any other roadblocks. If you want to DM me I am happy to give you a realistic idea on what to expect and don’t need any personal info to do that. Rates will hopefully improve after the dust settles from the election which will help!
I say get the ball rolling. The first home my husband and I bought together was entirely via my credit, with his income info. We never really worried about getting his name on the mortgage. You’ll probably qualify for FHA, but those loans come with habitability conditions. Discuss with a loan broker unless you know for sure you’re only going to finance through your CU.