How to get a mortgage on a gifted house?
Question Details: My dad wants to gift his property to me and my girlfriend of 14 years. He owes $37,000 on it and it has been appraised at $309,000. We need a mortgage for what he owes on it. How do we make this happen? We are both first time homebuyers. We have lived in the home for the past 5 years and paid the house payment, taxes and insurance for my dad. We've been told that the only way this can happen is to take a personal loan for what is owed with a ballon payment in 5 years. We really don't want to do it that way. We would like a mortgage and then be able to pull a home equity line of credit to start renovations on the home.
You can't get a mortgage to buy the home, because you are not buying it. And you can't yet get a home equity loan, because you do not yet own it. But you can take a personal loan as suggested to pay off what your father owes; then once you own the home, take out a home equity line of credit to both pay off the personal loan and use the money for renovations.