Q: My mother and Iive together in a house she owns. There is still a mortgage on the house, but I want to buy it from her (basically take over the mortgage) and we both plan to still live there. Can I do this without having to qualify for a loan? I have a great paying job and can afford the payments–but my credit is not very good right now. Also, what kind of tax implications would I face?
A: First, you should contact the lender & check to see if the mortgage can be assumed & what the requirements would be. If it is not assumable, then ask the lender if they would allow you to purchase on a land contract, explain the Family relationship & your plans with them. Now, more than ever, banks seem willing to work things out with the homeowner, especially if there is any risk of them (the bank) getting the house back.
Secondly, home ownership has terrific tax benefits. The taxes & interest on the mortgage are usually deductible. To see how that might impact you, consult your tax adviser. Everyone’s tax situation is different & consulting with them would show you the whole picture as it applies to you.