Home Buyer Q & A
October 1st, 2012
- We have a property that was owned by my husband's parents. They are both deceased, and the property is currently owned by all of the children. We would like to buy out their interests and keep the house as an investment property. How do we do this? If you are on the title to the property or on title by virtue of a will or trust, you would be able to refinance the property, buy out the siblings and take ownership in your name. We would do this through a cash out refinance. At closing, any debt against the property is paid off, the remainder would be divided among siblings and you would take title to the property. You do need to discuss with your estate attorney and siblings exactly what everyone expects to receive out of the transaction and any tax implications.
- We are purchasing a home using my VA eligibility. With the current market conditions, we would like to keep our primary residence and rent it out until the market comes back a little bit. Can we use the lease to offset the mortgage payment? Yes, provided you have an executed 12 month lease, first month's rent and security deposit collected. Most other programs require one year of proving rental income with a filed Schedule E as part of your federal tax return.
- We are purchasing a home. I am 100% commission, what do I need to provide for pre-qualification? An individual who is commissioned is treated like a self-employed individual. One month worth of paystubs, 2 years 1099's and two years federal tax returns with all schedules. Please remember, business expenses are deducted and a two-year average is also used for calculating. If income in the most recent year is less than the previous year, we use the lower year and do not average. Non-cash items may be added back in to income.
- Jennifer Keenan, Senior Mortgage Consultant, NMLS# 101837, Tidewater Home Funding 757-366-8690