How To Buy A Home From A Family Member With Zero Out-Of-Pocket Costs | MortgagesByScott.com

hi this is scott hastings with mortgages by scott on this channel i talk about mortgages in north carolina south carolina and florida if that's something that you are into please subscribe and click on the alarm button so when i post new content you will get notified today i'm going to talk about buying a home or property from a relative so a lot of people especially now are coming to me and they might have been living in a home that is owned by one of their relatives or one of their relatives just is selling them a home that that they own typically the home is owned you know free and clear obviously the relative is is typically giving them a really good deal in the home selling it to them for what is usually much lower than market value and something that most people don't realize is that if you're buying a home from a blood relative then you can get what is called a gift of equity what that means really is that you can buy the home without putting any actual money down out of pocket as long you know as the relative again is selling the home for less than what the market value is so it's a little hard to get your hou your head around or is when i first started doing is a little hard for me to get my head around but basically a gift of equity is just what it sounds like your down payment is going to be a gift of the va of a portion of the value of the house so let's just say for example that um you are living in a house your parents own the house they they own it free and clear if you were going to sell the house on the open market just to make numbers easy let's say the value it would appraise for is 200 000 but your relatives or or your parents or whoever they are they're gonna sell you the house for a hundred thousand dollars um so what they can do is they can gift you say 20 equity so they could for example sell the house to you for 140 000 the 20 down would be the equity that's already in the property you would get a mortgage for a hundred thousand dollars so we'll assume you have good credit get a conventional mortgage so now you're able to buy the house with no mortgage insurance no down payment and also what the relatives can do is they can gift the closing costs so the seller the relatives let's say closing costs are five thousand dollars then they raise the sales price of the home to 145 000 so now you have bought the house with no money out of pocket for down payment or closing costs and it's all come from the equity that's already in the house so hopefully that makes sense but even if it doesn't if you're in that position and uh you want to hear more about a gift of equity and how it applies to a home mortgage in north carolina south carolina or florida and actually it's the same in all states in the united states so i can answer those questions too feel free to send me an email or go to my website by mortgagesbyscott.com you can also text me at 704-890-7168 again if you like this content please click the subscribe button so you'll be notified when more content is posted if you've got any questions just post them in the comments below and i'll make sure and answer them thank you

Channel: Mortgages by Scott

Views: 3,353

Keywords: How To Buy A Home From A Family Member With Zero Out-Of-Pocket Costs, MortgagesByScott.com, Buy Home From Family, No Money Down, Family Home Purchase, Mortgage Tips, Home Buying Process, Family Mortgage, Real Estate Transactions, Zero Down Payment, Mortgage Lender, Home Financing, Mortgage Options, No Money Out Of Pocket, Family Home Buying, Property Transfer, Family Real Estate, MbS&x%

Id: odYnNhRKJ_8

Length: 4min 7sec (247 seconds)

Published: Sat May 22 2021