Question on doing a mortgage on a great deal. - Posted by Mike M.
Posted by Mike M. on January 14, 2000 at 13:47:31:
I’ve done a lot of research over the last few years on RE, only to make excuses about not having enough time, needing good health insurance for my son, etc.
Anyway, my question here is that my father is wanting to sell his house to ME as soon as his new one is built. It is a huge home, 5-dbrm, 3-1/2 bath, 4 car garage, huge driveway, hot tub (built-in), 1/2 acre lot, nice tress on lot, etc. The house is in great shape and will easily appraise for over $170k. Its in a typical midwestern subdivision built in the 1970s, although it has an addition that has the extra rooms an garage done in the mid-80s.
Ok, the house easily will appraise for $170k, and my father said he would essentially “give” me the 20% down for the house, or sell it to me for around $130k. My problem is that I won’t easily qualify for a bank loan, due to past credit, and the monthly payment is slighly above what I can “easily” afford according to the banks. I have a roommate lined up, and I can pay the mortgage and utilities that way with no problem.
What would be the best way to structure this deal? I was thinking about going through a mortgage broker to find private financing or ?? Another option would be to have my father (the owner) hold/write the mortgage and then sell it to cash out so he can pay off more of the new home he is buying. Could this be easily done? Is an 80% LTV enough on this? Any other ideas? Having instant 20-25% equity is definitely in my best interest. I can’t pass this deal up!
He doesn’t like the idea of doing a L/O or holding the mortgage long because he wants to cash out to pay off other things. Anyone with any advice or ideas, please let me know.
Thanks everyone in advance!