Real Estate Home Mortgages/FHA Home Loan for Buyout
QUESTION: I own 1/3 ownership of my home with my 2 siblings whom own the other 2/3. I want to buy them out, what kind of mortgage can I get for this.
The house is owned free and clear and all three of us are on the title. I want to buy them out in the most simple way. I don't want them to finance the mortgage as they will be relocating. I have heard you can do a refinance to get them off of the title or something like that but how can I refinance if the house is free and clear and there never was a mortgage on it to begin with? My idea is to go for an FHA home loan, my credit is around 620 so I cannot easily get a regular mortgage. Can I do this FHA on a house in which my name is partially on the title? How does my 1/3 come into play as far as equity, they are willing to use the 15% gift of equity but is this necessary with my 1/3 ownership? More complicated solutions if that doesn't work is for me to sign my share to them and then apply for the FHA if me being on the title is a problem, or them sign their shares to me and I may have better collateral to get the loan, both of those are complicated. Please help.
ANSWER: You can refinance them off title.
Are you needing to buy them out? Need to get cash from the mortgage?
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QUESTION: Yes I am needing to buy them out. I don't need cash from the mortgage if it makes the mortgage harder to get but it would be nice.
How to I refinance them off the title? Can I refinance when the house is free and clear. Does this refinance have a name? Thanks.
Called an FHA Cash-Out loan. You can refinance the loan(or zero balance) and up the loan amount to get cash to pay off other 2.
We don't do the FHA Cash-Out here in Texas.... So I don't know all of the
Contact Shane Milne
He is in California but lends in all states.
He will be able to walk you thru your options.
I have known Shane for 8+ yrs.
I would let him do my own personal home loan.... He is that good.
Let me know how it goes.
You can call me if you have any questions
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