[Labdrac]

Can you help me buy the house I live in from my parents. I moved into my Grandmothers home with my children after a divorce. My Grandmother has passed away since, and the house is in my Mother and my Aunts name and I pay them rent. I have visited this subject with them and they want to help me out, but I don't know if I can do it. I am a single mother, 41 years old. My youngest son who still lives with me is 12, my other children are grown and on their own. I pay very little rent for the home I live in, because we are family, any other person would have to pay twice what I do. I have a good job that pays me $22.75 hourly, and I typically work 40 hrs or more a week. I purchased a car with the help of my Mother two years ago, and have never been late with a payment. Can you recommend a website to visit, or anything that would help me do this?
Thanks for your help

[Wondergirl]

Well, it's a buyer's market right now.

What would your mother and aunt want for the house? Are there other sibs that could object and cause trouble?

Then, figure out what you could pay as a down payment. (Under 20% down with a conventional mortgage, you will have to buy title insurance.)

But they are family, so you all can play this all sorts of ways. First, get a price for the house. $500,000? $5000?

[CaptainRich]

Wondergirl is quite correct.
I'd get professional help to avoid legal problems neither you or your family are familiar with. I'd recommend BuyOwner or something like it... (my Realtor friend is going to hate me... ) but I'd also stay away from big real estate companies due to their commission.

Is there any chance it could be "gifted" to you. Taxes and such will still occure.

Good luck!

[Wondergirl]

My son and I bought my grandparents' house from my uncle (who lived there, 8 blocks from my house) when Uncle finally had to go into a nursing home. Since I had been watching out for Uncle for years, he set a lower price on it to "pay me back".

We didn't use any real estate agents, but only a real estate attorney to make sure everyone got treated fairly and that all the right papers were signed. My uncle, the seller, paid the closing costs, and I paid a small amount as a down payment. My son and I got a 30-year mortgage from a local bank.

After the closing and after my uncle moved out, my son moved into the house, He pays the monthly mortgage payment ($500 or so), the property taxes, and the homeowner's insurance.

My uncle used the money from the sale of the house to pay nursing home costs.

[DianeV Sr Loan Officer]

Hi Labdrac: There are a couple of things that need to be addressed. If your credit it good and you have minimal debt we can get you in the house. Your mom and aunt agree on a price for the house, which will pay off them and any other heirs that may be involved. If you are one of the heirs, your share can be counted as the down payment. The price they agree on should also include enough to pay the closing costs for you. You will need either a real estate attorney to draw a purchase and sales agreement and to handle the closing. Take out and FHA mortgage for 30yrs fixed rate. It is an excellent mortgage that is backed by the Federal Govt.

Naturally, you will have to qualify for the payment based on your income and each state has it's own particular regulations. See a reputable banker or broker in your area, and be sure to specify the FHA loan.

DianeV Sr Loan Officer