How should I go about purchasing my gram’s house? Mortgage? Home Equity? FHA? It is in an estate of my dad.?

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Question by crave132: How should I go about purchasing my gram’s house? Mortgage? Home Equity? FHA? It is in an estate of my dad.?
Ok so here is the situation. My gram died over a year ago and her house has been sitting in an estate that my dad and his 3 siblings are in charge of. He has been holding up the estate so I can get the house, more about but I have to save up money first. I have the money saved up now, this just need to see about what my best method is for getting the house? Regular mortgage rates at local banks are 5% for 30 years and up. The house was appraised at 72000 and I am getting it for 60000, 15000 for my dad and each of his 3 sibling divided equally. My question is should I get the house deeded to me for $ 1 to avoid having to pay all the closing costs and do it as a home equity loan? Is there somewhere better to get a mortgage than a local bank? None of the big banks will do FHA/government loans. Please tell me the best way to go about getting the house in my name, and getting my aunts and uncles their money.
I have already been qualified for the loan, but if I do a home equity I wouldnt have to pay closing costs. Yes i know what a home equity loan is, I used to work as a credit analyst at a bank. There is no money owed on the house, and if it were in my name I would have all the equity to take out. The only reason I need money is because my aunts and uncles want their share for the house, and they want it soon. I have 5000 saved up, which is 5% down plus closing costs. I just want to know if there are any other loopholes besides having the house deeded to me for $ 1, which is not fraud and is legal. Thanks for the answers so far, but you havent told me anything I dont already know.

Best answer:

Answer by Greg K
There are a number of ways to do this, but it’s all about the level of trust between the parties.

First off, the purchaser needs to be someone that can get a loan. If that is you, fine, but if not, you need to figure out who can meet the lenders requirements. What mortgage products are available to you are predicated on the creditworthiness of the borrower. A mortgage broker may be of real assistance to you in figuring this out.

Closing costs vary with the mortgage product. You will need to figure out the nuances of closing costs as you decide your mortgage.

Finally there is the question of title. Assuming you purchase the house, the title is now in your name. It sounds like the house is already in a trust for the estate. Transferring the beneficiary name on the trust may be the easiest thing to do. And it doesn’t involve much money at all.

Nothing needs to change until you sell the house. If the trust owns the house, the trust gets the money. You need to look at the trust documents to understand what happens to the money in the trust.

Good Luck

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