Posted by JohnBoy on April 19, 1999 at 11:45:19:
“Subject To” would be where the property gets deeded to you taking your fathers name off the title, but he would remain on the original mortgage. He would still be responsible for the mortgage if you didn’t make the payments.
If he wants completely out of the deal then maybe he would be willing to sell to you on a contract for a year while you establish a payment history. After one year you go down to the bank and just refinance the property and pay his loan off.
If your credit is excellent you could qualify for 100% financing, but you will pay a higher interest rate for that. The best way would be to move in, make payments for 6-12 months, save all your canceled checks, and then go down to the bank and just refinance the property. The bank will give you a new loan based on the appraised value without having to come up with a down payment since they would be treating it as a refinance Vs. a purchase at that point.