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Episode-2492- Expert Council Q&A for 8-16-19 — 3 Comments

  1. For the question about buying a house from family. If there is significant equity beyond the 100k there can be significant tax and mortgage ramifications. My wife is a branch manager for a mortgage company (if in Utah she could help you). If not talk this thru with your preferred lender. She just did this for a friend and co-worker.

    When it comes time to buy from your parents (or anytime before that) have them put you on title. This is a very inexpensive and fairly quick process. Then you can refinance it into just your name pretty much anytime after you are on title.

    This avoids tax ramifications for your parents. Also you can use any excess equity as the down payment on the refinanced loan. If they were to just sell it to you below market value they get hit with some taxes and you cannot use excess equity as the down payment.

    Hope that helps

     

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