Skip to main content

How to go about buying a house with a family member

I’m in my 30s grew up in SoCal. As we all know housing prices here are crazy now. Even with my 150k salary a year, it has not been enough for me to qualify for anything in OC/LA, and my credit score is barely 700. I’ve been paying off medical, student loans, and CX debt these past years and could not jump on buying a house during Covid.

My Moms brother has a stable blue collar job, and is very good with his money. he and his wife have well over 100k+ saved up, 800+ credit score, and vehicles paid off cash, the only problem is that they are undocumented. I don’t think he will be able to become a citizen until his oldest child is 18, but his wife will be receiving her green card soon.

I say this because, they would like to purchase a home/duplex with me, so that we stop throwing our money away in rent, and build equity.

  1. I don’t have enough money saved up for a down payment on my own,
  2. he hasn’t purchased a home because of his legal status.
  3. I believe it would hurt my young cousins chances of receiving financial aid for university. I think for financial aid they look at if your parents have equity and what not.

So how should I go about this? I see this as 1. An investment opportunity since they would be fronting the down payment and I’d have time to pay back my portion, and would be saving money at the same time, since my portion of the mortgage would be less than what I’m currently paying for rent (close to 4k) 2. I’d be helping out a person who is a father figure to me ( mine passed away when I was a child, and he and his wife have always been there for me, and when I went through university ) 3. This could help me save up money and be able to purchase another home in the next few years, we can decide to either buy each other out, or sell the home for a profit.

Is this even a possible thing to do? I would want to get everything documented on paper, notorized of course since I would be the one taking out the home loan nd would be a first time buyer. How would I go about putting him on the title?

What would be other risks I’d be exposing myself to?

Would I even be able to purchase a home that I potentially wouldn’t qualify for, “loan wise” ( let’s say I qualify for 500k but we find something that is say, 900k )

Excuse my ignorance and thanks for any suggestions!

submitted by /u/Important_King2392
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1bbycyt/how_to_go_about_buying_a_house_with_a_family/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Obtaining a real estate license as a hobby?

Hello, I am 24 years old - 2 years out of college and I have my main job. I was looking to get a real estate license (in California if location matters) as a hobby/for fun since I like real estate ever since I was in high school. In the past 2 years, I would go to open house in the weekends to look at homes for fun. I don’t plan to practice real estate full time as I have my main job but I am curious are there any benefits to this? In the future, I plan to own multiple properties and have rentals, so I was wondering if getting a real estate license can help me with it? Thanks submitted by /u/AlohVera [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1f0qx9i/obtaining_a_real_estate_license_as_a_hobby/
Post a Comment
Read more

Advice? Moved out of my primary residence and now renting

I moved out of the house I own in August 2021, I lived there for 8 years, I have been renting an apartment the past 3 years and renting out my house. My current tenant is moving out in September. I seem to have just missed the living 2 years out of 5 years rule for being exempt from capital gains tax and my house being a primary home. Any advice on what the best thing to do would be moving forward? Continue to rent out my house? I'm happy with my rental, but wouldn't mind buying another property down the road. I could sell my house down the road and try to do a 1031 exchange? Moving back in my house isn't ideal because it's an hour away from where I currently live. I could take a HELOC perhaps and try to buy another property and continue renting for the long term? I do have a 2.4% mortgage rate on the house so I don't mind keeping it for a while. Thanks for everyone's advice. submitted by /u/Ok-Top-7859 [link] [comments] source https://www.reddit.co...
Post a Comment
Read more