Easy Home Equity Loan

Hello,

My parents own a home outright (no mortgage). I signed on to the deed of the home but I own my own home and reside in it. Can I get a home equity loan on my father’s house in my name?

Interesting Blogs

I love reading the advice here.

My wife and I are planning to buy a home in Indiana from our parents, which they own without a mortgage. We’re planning to let the parents finance the sale to us (at a reasonable, IRS-approved, rate).

The current value is about 0K. The home is about 20 years old. It is habitable, but needs repairs (roof, carpet, new mechanicals, cosmetic fixes, etc.) which should rapidly increase its value by 10-20%. We plan to buy the house as-is. We have the K for repairs.

Immediately after that (or during, if possible), we’d like to remodel the kitchen and baths. We will likely want to take a loan (5-20% of the home value) to do it. The parents won’t have the funds for that, so we’ll be looking for a mortgage.

What’s the best course for that second loan?

We don’t want to pay PMI or other unwarranted fees. We have decent credit, 690-710, a low DTI ratio, and good financial reserves.

Any other general advice is appreciated. Thanks!
I seen some answers that suggest a HELOC. I hadn’t thought of that, since I presume the rates will be significantly higher. Wouldn’t a 2nd mortgage make more sense?

Interesting Blogs

Is it possible to have my parents "loan" me their home equity loan to purchase a property for myself? I would pay them back with a interest. My credit is great, but just don’t have the down payment. Are they under any obligation to do anything specific with that loan. Thanks!

Interesting Blogs

My mom has a home that she bought in 1997. She bought it for 81K and now it is worth about 350K. (It was built in 1991 and we are in southern California.)

She paid off the house back in 2004-just after her husband died she collected the 100K from the life insurnace policy. She is making about .60 an hour-full time-and now she will be bringing home less since her employer is going to take out about a month for health benefits. She only made around 17K last year.
She is about 4 or 5K in credit card debt. Since her husband passed in 2004, she has paid down the credit card debt a lot from 7 or 8K – (most of the money came from the left over amount after paying the house off) but she is still struggling to pay all of her bills.

If my parents had not had the life insurance + if my mom had to pay the mortagage (0.00 month) we would be living on the street now. There is no way she could afford that on her income. Is it worth it getting a home loan for 5K or 6K?
My mom has the ’99 truck (it was dad’s) and it is running and that truck is paid off. Her car a ’99-not running is also paid off. I already asked her if she wanted to rent the room out-she would rather not with her 3 little doggies. They would bark too much.

I thought that interest payments would be lower than credit cards. She is paying 22% of one of her credit cards. that is crazy! I will show this to her tomorrow. Thank you all! If I could I would give you all best answer!

Interesting Blogs

1. Which type of debt is most often secured? (1 point)
mortgage
personal line of credit
credit card
revolving line of credit
2. A(n) _____ is considered unsecured debt. (1 point)
auto loan
mortgage loan
home equity loan
credit card
3. You (or your parents) are purchasing a car for ,965.00 plus 6.25% sales tax. The down payment is ,500.00. What is the difference in the accrued interest at the end of the first month between the average and excellent credit ratings?

Secured
Unsecured

Credit
APR (%)
APR (%)

Excellent
3.95
4.57

Good
4.45
5.04

Average
4.90
5.75

Fair
5.60
6.55

Poor
7.05
8.70

(1 point)
.01
.95
.77
.83
4. You (or your parents) purchase a car for ,125.00 plus 7.5% sales tax. The down payment is ,125.00. You have a fair credit rating. What is your new principal balance at the beginning of the second month if you pay 9.75 at the end of the first month?

Secured
Unsecured

Credit
APR (%)
APR (%)

Excellent
3.95
4.57

Good
4.45
5.04

Average
4.90
5.75

Fair
5.60
6.55

Poor
7.05
8.70

(1 point)
,706.14
,595.25
,704.53
,579.63

Interesting Blogs

I bought a house three yrs ago with no money down. The house is now worth about 0k, down from 0k. I have been paying all my bills on time but choking in them.
My first mortgage is was modified and sold to a new provider and is at 4.125%. My second mortgage is at 10.25%.
First mortgage is about 5k and about 0 a month. Second mortgage is about k and about 0 a month.

I have over k in credit card debt also.

I was advised to try to have the second mortgage forgiven for 1-10% of the loan amount by claiming hardship and mentioning that I’m considering bankruptcy.
If the house is foreclosed they would see no money whatsoever so it might be a good deal for them to get -7k in a lump sum and write off the rest.

If I could make the second mortgage go away, than I might be able to make payments. I’ll get the money from my parents as long as it’s a reasonable amount.

Has anyone done this? Can someone recommend how I should go about it? Or can you suggest other avenues?

Thanks.

Interesting Blogs

I graduated in May with about K USD in loans:

15K in Federal Staffords @ 6.25%
Min payment is 0/mo

50K in Private (Sallie Mae) @ 7.25% variable.
Min payment us ~0/mo.

At the moment I am paying the minimum on the lower interest Federal loan, and paying about 0-400/mo EXTRA on the higher interest loan.

I just moved home to save money so I am putting 0/mo in a non-tiered Money Market @ 5.2% APY.

10% of my monthly income pre-tax goes into my 401(k) (about 0), of which 3% is matched by my employer.

I am wondering if there is anything else I can be doing to help pay off my student loans quicker, in particular the private loan. Someone mentioned having my parents take out equity on the house at a low rate, used the money to pay off my loans, then I pay my parents.

Someone else suggested investing in other types funds, though I am not sure how to go about this, or if I should.

Anyone have any suggestions? Should I be doing something different?

Thanks.

Interesting Blogs

I just asked this …but repeating a question becuz of a tiny misunderstanding

My parents received a letter which mentions these things …WHAT DOES THIS MEAN ????

you may refinance and possibly lock in a interest rate and get a good amount of cash from your home’s estimated available equity through exclusive fast track loan program, available to you as a select, qualified COUNTRYWIDE home loans customer ? On top of this you may also qualify for 1/2 point reduction in in the DISCOUNT POINTs on your NEXT HOME REFINANCE or Purchase Mortgage ..

MY PARENTs own this condo for last 4 years and they received this letter …….. is this for REAL ???g

do my parents have any real benifits from this … ?? is there a possibility of gettig a cash …. ?

Somebody answered this question that I may be able to get the cash but i should only use that in emergency … i just need to know HOW THIS WORKs ?? Thanks for the suggestion and pre

Interesting Blogs