NEED ADVICE: from someone in the home mortgage field!

amother

Tue, Jun 03 2014, 8:19 am

Is this scenario possible/feasible? What are the pros-cons?
Taking a loan from a close family member for a home, adding that to money you have in savings, and buy a house for your first home, and then later when you have a higher income job when you'd be able to get a good mortgage, (according to our situation, finishing up grad school, it would practically be within a year or 2) you then take out a first time homeowner mortgage which goes to pay back the family member, and then you pay off the mortgage as you normally would. In essence it seems like a way to buy a house and 'push off' the morgage until you're really ready for it. Yes, we do have other income and would be able to pay monthly expenses.. but we're talking here about qualifying for a mortgage, etc. It seems like this is a way to push it off till we could qualify for our own mortgage but I want to make sure there aren't "catch"es to this.

Is this possible to do and still get first time homeowner benifits / tax deductions?
If one does this, does the mortgage still count as a first time homeowners loan?
Any other advice from someone who is IN THE FIELD and knows this stuff for sure, please respond.

amother

Tue, Jun 03 2014, 4:24 pm

I'm not sure because in your scenario the title would be in your name for two years before applying for a mortgage., so I don't think you would qualify as first time homebuyer. You need to walk into a mortgage bank and have a chat.

amother

Tue, Jun 03 2014, 5:30 pm

Is did this. My father bought me my house under my name. 2 years later I took a loan against the house to buy the house off of him and now I'm making payments to hue bank and my dad has the cash.

amother

Tue, Jun 03 2014, 6:33 pm

So he paid for it, you took out a first time homebuyers loan 2 years later, paid him back, and then got your first mortgage, and then started making payments on the house to the morgage company then?
So the mortgage company don't care if your house is in your possession already as long as it's your first mortgage loan?

amother

Sun, Jun 08 2014, 7:53 am

amother wrote:

Oh.. That's your question? No, I was not able to get the first time homeowners mortgage because the house was already in my name.

OK - so putting the first time homeowners 'perks' aside,
Are their any benefits to actually having a mortgage VS. putting our own down payment and the rest borrowing from a family member and paying him back with no interest?

Advice would be appreciated!