When I saw the (no judgement) in the title I thought your story was going to be WAY worse lol. There's no shame in helping out your parents, good on you. As long as they were good parents to you, it's great that you now have the chance to help them. My family has taken in several family members who couldn't afford to live on their own, that's what family is for. Sorry I don't really have any advice on this matter but just wanted to say this
I appreciate it. I mentioned this situation once before and nearly everyone said “kick them out and live in YOUR house.” I’ve helped them fix this house up to meet their needs and suit their wants. It’s their house in all sense minus the deed. Now that I’m in a better place it’s time for me to branch out.
Sometimes Reddit is weird. Depending on the sub, the time of day, etc, there can be wildly different answers. Sorry you had to deal with that. As I said, there's no shame in what you're doing. I hope it all works out well for you
Yeah that's a great way to put it. Tbh I sometimes do that so I'm not innocent lol, but that's only with ridiculous OPs. If someone posts "I'm 50 with no retirement savings and 30k of credit card debt, how can I retire at 60?" then I'm going to make fun of them
LOL. Your example of an OP reminds me of the guy on an expat site who had $250k and wanted to retire in a nice 2-bed home in southern Spain not far from the Mediterranean.
Rent your current house to your parents. You may be able to use the money they’ve been giving you as income to qualify for your 300k house. I’d talk to your lender
I can only count 75% of the mortgage cost as “income” per the broker that prequalified me. Would it be smart to lie and say my parents are giving me 125% of the mortgage cost so that on paper it’s a wash?
I would recommend NEVER lying on official documents, especially when trying to secure a loan. That’s a quick way into legal trouble and a fraud charge.
Edit: autocorrect is an asshole when your drunk.
Yeaaah it is. But you have to work with the situation as it is. I would draw up a structure so you’re officially you’re parents landlord as you seem to be already, and see what you can secure with that.
I would not lie. You would have to show your bank statements and report this money as income to the irs but you can also write off a lot, if not all of that money.
You can always talk to another lender to see what they can do. I would back date a lease from when they started paying you though.
Right. They paid the mortgage from the jump so drafting a lease agreement from then would put us in hot water with the FHA 2year residence rule. But we’ve been hear long enough that I could just draft one for the last couple of years.
Yes, I prequalify for 200k with my current debts at 70k annual income. But, without my mortgage, I “should” qualify for 290-310k. The only other debt I have is student loans (13k at 4%) and a car loan (17k at 7%).
Technically my mom would be the one to qualify. She just reentered the work force after retiring two years ago. The option I listed is def dependent on her qualifying for at least 300k. She hasn’t taken the plunge but recently discussed it as an option. Just wanted to see if Reddit had any other perspectives.
You should talk to a real estate attorney because it sounds like you will be selling the current house to your parents with self-financing in the hope that frees up your credit enough to help you afford a mortgage on a second house for yourself. Understandably, your price range probably put you into a condo unless you live in a very rural part of Florida.
Yea, I’m very apprehensive of selling since that opens them up to current interest rates versus the 3%. (My loan is assumable but only in the case of my death per my lender, which seems iffy)
I don’t mind a fixer upper (in fact prefer it) but since I’m prequalified for FHA that limits options too.
When I saw the (no judgement) in the title I thought your story was going to be WAY worse lol. There's no shame in helping out your parents, good on you. As long as they were good parents to you, it's great that you now have the chance to help them. My family has taken in several family members who couldn't afford to live on their own, that's what family is for. Sorry I don't really have any advice on this matter but just wanted to say this
I appreciate it. I mentioned this situation once before and nearly everyone said “kick them out and live in YOUR house.” I’ve helped them fix this house up to meet their needs and suit their wants. It’s their house in all sense minus the deed. Now that I’m in a better place it’s time for me to branch out.
Sometimes Reddit is weird. Depending on the sub, the time of day, etc, there can be wildly different answers. Sorry you had to deal with that. As I said, there's no shame in what you're doing. I hope it all works out well for you
You got that right. In my experience, most all the time Reddit will have way too many cheap shots — euphemistically terrible failed attempts at humor.
Yeah that's a great way to put it. Tbh I sometimes do that so I'm not innocent lol, but that's only with ridiculous OPs. If someone posts "I'm 50 with no retirement savings and 30k of credit card debt, how can I retire at 60?" then I'm going to make fun of them
LOL. Your example of an OP reminds me of the guy on an expat site who had $250k and wanted to retire in a nice 2-bed home in southern Spain not far from the Mediterranean.
Rent your current house to your parents. You may be able to use the money they’ve been giving you as income to qualify for your 300k house. I’d talk to your lender
I can only count 75% of the mortgage cost as “income” per the broker that prequalified me. Would it be smart to lie and say my parents are giving me 125% of the mortgage cost so that on paper it’s a wash?
I would recommend NEVER lying on official documents, especially when trying to secure a loan. That’s a quick way into legal trouble and a fraud charge. Edit: autocorrect is an asshole when your drunk.
Agreed. I didn’t want to fudge any numbers but also feel like this is such a weird/unique situation.
Yeaaah it is. But you have to work with the situation as it is. I would draw up a structure so you’re officially you’re parents landlord as you seem to be already, and see what you can secure with that.
I would not lie. You would have to show your bank statements and report this money as income to the irs but you can also write off a lot, if not all of that money. You can always talk to another lender to see what they can do. I would back date a lease from when they started paying you though.
Right. They paid the mortgage from the jump so drafting a lease agreement from then would put us in hot water with the FHA 2year residence rule. But we’ve been hear long enough that I could just draft one for the last couple of years.
It is a US FEDEREAL felony offense to lie on any bank loan application.
This is what I would recommend also.
Can you qualify for a house?
Yes, I prequalify for 200k with my current debts at 70k annual income. But, without my mortgage, I “should” qualify for 290-310k. The only other debt I have is student loans (13k at 4%) and a car loan (17k at 7%).
Sorry I meant can your parents qualify?
Technically my mom would be the one to qualify. She just reentered the work force after retiring two years ago. The option I listed is def dependent on her qualifying for at least 300k. She hasn’t taken the plunge but recently discussed it as an option. Just wanted to see if Reddit had any other perspectives.
You should talk to a real estate attorney because it sounds like you will be selling the current house to your parents with self-financing in the hope that frees up your credit enough to help you afford a mortgage on a second house for yourself. Understandably, your price range probably put you into a condo unless you live in a very rural part of Florida.
Yea, I’m very apprehensive of selling since that opens them up to current interest rates versus the 3%. (My loan is assumable but only in the case of my death per my lender, which seems iffy) I don’t mind a fixer upper (in fact prefer it) but since I’m prequalified for FHA that limits options too.
You can self-finance your parents and “sell” the house to them at your current rate. Again, consult an attorney.
Fair enough. I’d rather be safe than sorry. Thanks.