[VJK9]

I own a home that I would like to sell to my daughter and son-in-law. It is appraised at $240,000 and has a $123,000 mortgage on it. We would sell it for $220,000 and we would pay all of the closing costs. My daughter and her husband have gone through some financial problems and their credit does not qualify them for the best rates right now, and they do not have a down payment. What would be the best way to get them into this home as owners? They have been living in it for the past six months and have been paying the mortgage payments. Someone told us something about a mortgage deed, but I am not sure how that works, or if it would work in this situation. We are not in a big hurry for the money from the sell of the home and have no concerns about their finances or willingness to pay for the home.

[kanicky73]

First of all I need to ask where your from? There are different guidelines for different states. I work for a mortgage company in WI, we do no down payment loans all the time. There are quite a few different options that they have depending upon where you live. Also with FHA loans they don't really look too much at credit scores, but the loan limits are different for different areas. I would love to answer more questions for you, just let me know where your at.

[Fr_Chuck]

Ok, first you can not deed the home to them while you still owe money on a mortgage on that home ( unless your mortgage company willl let them assume it)

I would bet, and it is a opinoin, that your currect lender will lend them the money if you co-sign, just knowing if they don't pay you have to.

So you talk to your lender about allowing them to refiance or assume the loan with you as co-signer and then you hold a second mortgage for the balance of the home value.

Or as noted there are loans for people with bad credit, esp if you have a loan of 1/2 the value of the property.

** this is assuming you are not looking to have cash in your hand for a while on this.