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About Denise Monaco
Expertise
I can answer questions about home mortgage financing, the difference between a mortgage banker and a mortgage broker, fees involved in purchasing a home and refinancing a home or obtaining a home equity loan and the difference between a 1st & 2nd mortgage and the option to have PMI (Private Mortgage Insurance) Jumbo loans, conforming and non-conforming loans.

Experience
I have been a closer, processor and operations manager and currently a account executive for a national mortgage banking company. I have been in the field for 25 years.

Education/Credentials
Real Estate License & 25 years field experience with many national mortgage banking companies.

Awards and Honors
Top sales person, employee of the month, highest sales award

Past/Present Clients
personal home buyers

You are here: Experts > Shopping > Home Buying/Selling > Real Estate Home Mortgages > Realaestate purchase from family

Real Estate Home Mortgages - Realaestate purchase from family

Expert: Denise Monaco - 8/31/2009

Question
Hello Denise, you provided the folowing (copy below)answer to this previous question , however is there not a mandatory IRS (AFR) interest rate required? I am in discussion with family regarding the purchase of a home and the Attorney and Accountant have informed me interest is required. pls. advise - your previous answer is below.

thanks
Hi Tim

If you want to buy a home from a family member all you really need to do is a deed transfer. From family member to family member it could be done for $1.00. If you did it at $200,000 there is transfer tax and it depends on the state and city where you live. If you would like to buy the home for $200,000 it is up to the person "selling" to you if they would like interest on the money. The rate for a mortgage today is approximately 5.25%. Cost would vary depending on what way you go. There is title insurance, notary, endorsements and recording fees involved and again it depends on where you live.

Good Luck
Denise

Answer
You can do a deed transfer from family for the $1.00, however when you go and get a loan the rate is set by the mortgage company. I suggested doing the deed transfer to get the home in your name. You would need to apply for a loan after 6 months of the home being in your name and the rest is up to who you get your mortgage from.

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About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here