Expert: Dick Dennis - 7/31/2007

Question
QUESTION: Hi, I am in the state of CA - My mom is purchasing a home and would like to add my name and my husband's name to the title.  Is it possible to add our names at the time of purchase even though she will be the only person on the loan, or would it be better to add our names once escrow closes, after she receives the title herself?  Thank you!!

ANSWER: No problem in adding you and your husband to the purchase agreement prior to escrow closing. Or afterwards, especially if you will be helping to make the payments. If your mother's credit is good enough to enable the purchase, fine. But it wouldn't hurt to put your name on the loan, too. It would help to strengthen your credit standing. I do wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: Thank you for your response; 2 more questions:

1. My mom has excellent credit of 792 but my credit is just about 640 - is it possible to be approved by a lender using my both of our credits for a 100% financing loan?

2. If my mom is the only one on the loan but I am the one making the full payments of the mortgage, can I claim the mortgage interest credit on my tax return?

I appreciate your time and help!!

Answer
There should be no problem for you to deduct mortgage interest from your tax return . . . as long as YOU ARE on title. It doesn't matter if your mother is the only one who is on the loan. However, I strongly suggest you try to be on the loan, too, because it would help to raise YOUR credit numbers. Take care, Di

Dick Dennis