Skip to main content

Helping a friend with a down payment

I have a friend who is currently under contract to buy a new and has his current house on the market. He doesn't have the 20% to put down in cash without selling securities so I told him I would lend him the money. He is buying his new house for less than his current house will sell and his current house is probably at 50% LTV so plenty of equity in it. He was going to roll most of the equity from the sale of his current house into his new house so he will be less than 50% LTV on the new house once his current house sells.

His loan officer said he can't take a personal loan for his down payment. Aren't there ways to structure the loan so it's not a personal loan? I can have my company make the loan and take a second mortgage on his current house? Or I can take a pledge of his brokerage account? Is there any reason why either of these wouldn't qualify?

To add, I'm not worried about him paying me back, etc. I'll have a note drawn up and if he does decide to screw a friend of 25+ years, it's not money that will change my life. Just looking to help out a friend.

Thanks!

submitted by /u/galaxydown
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/jljksi/helping_a_friend_with_a_down_payment/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Making offers on houses not listed for sale.

I want to buy a home for retirement. I am looking at lots of options, mostly focusing on the locations that appeal to me. I see lots of Zillow estimates of homes that look like great deals to me. Are these estimates accurate, even though similar houses in the same area that are for sale are usually priced much higher? If so, is it realistic for me to try to make offers to owners that do not have their homes listed? Would a realtor even consider helping me do this? Or, do these values indicate that the houses listed for sale are overpriced, and I should just lowball until someone accepts? Are houses today tending to sell far below list prices, or ??? submitted by /u/chewybrian [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1o4mcon/making_offers_on_houses_not_listed_for_sale/
Post a Comment
Read more