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Purchasing a home as a rental investment
Posted on 10/10/17 at 9:38 am
Posted on 10/10/17 at 9:38 am
Has anyone ever purchased a home by basically creating a Land Trust in the seller's name (John Doe Land Trust) and assuming the note by naming a new trustee?
Seller is in agreement and has favorable financing.
Seller is in agreement and has favorable financing.
This post was edited on 10/10/17 at 9:57 am
3
Posted on 10/10/17 at 11:21 am to Tigahs2007
You are talking about buying the home by assuming the current mortgage as is? I don't know about doing what you are talking about, but that's possible I suppose.
FHA loans can do this, its one of the "benefits". It almost never happens though, because you have to have a down payment equal to the difference in the sales price and the loan amount.
FHA loans can do this, its one of the "benefits". It almost never happens though, because you have to have a down payment equal to the difference in the sales price and the loan amount.
Posted on 10/10/17 at 12:22 pm to baldona
If the loan assumable is an FHA then the property can't be an investment property
Posted on 10/10/17 at 12:27 pm to Tigahs2007
you might want to talk to their lender because assuming mortgages doesn't happen much any more.
Posted on 10/12/17 at 1:53 pm to ellesssuuu
quote:
If the loan assumable is an FHA then the property can't be an investment property
True, but it wouldn't be the first time someone didn't live in their 'primary residence'. Needless to say, I was simply stating that assuming a mortgage is not a new thought.
I'm curious why the OP wants to do that though? Mortgage rates are not terrible right now, the difference can't be that significant.
Posted on 10/14/17 at 8:19 am to Tigahs2007
quote:
purchased a home by basically creating a Land Trust in the seller's name (John Doe Land Trust) and assuming the note by naming a new trustee?
Why the shenanigans with the trust and naming a new trustee?
Not criticizing, this is just a new one on me and I'm trying to understand what you are trying to avoid/accomplish by that over a straight out assumption or purchase by an individual.
Posted on 10/14/17 at 8:21 am to Twenty 49
quote:
Not criticizing, this is just a new one on me and I'm trying to understand what you are trying to avoid/accomplish by that over a straight out assumption or purchase by an individual.
My guess is no closing costs and as he said a better loan rate? That could save him $5000 or more even with 2-3 hours of legal work to set it all up.
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