Thanks in advance for any information that is provided by everyone here. This got a bit long winded but I tried to break it down a bit. I apologize in advance for the ignorance I have on this subject. This option came to us a bit more sudden than we expected.
My wife and I have been presented with the potential opportunity to buy her childhood home from her father at a good price. It is in a very good area with great schools. I only say potential because this is very early on in the planning stages. We are looking at what the best way to handle the sale/buying of the home that benefits both parties the best.
A broad overview of move in ready comps are around what we would probably end up spending on a home. I wouldn't consider the house move in ready. It was lived in but not cared for very much. I think that gives us a bit more room to work with so we can fix what needs to be fixed while making it the home we want.
Our current thought process going into this would be to get an loan with added capital for improvements that are needed(kitchen absolutely needs to be redone). Neither side would have a realtor so we wouldn't have to deal with those fees. Just the other normal stuff. The house would essentially be as-is and the things that need to be fixed to make it acceptable for the lender would be resolved ahead of time. Railings need to be put up in a few places small stuff like that.
Taking over the mortgage isn't an option. The rate is in the double digits. We would be able to get a better loan on our own and we have enough liquid to cover the downpayment for FHA(assuming at least 10% down) while not depleting our safety net. I am leaning towards a heavier safety net since moving isn't cheap and we would need to buy things to furnish the home although not much. I am honestly amazed he is still carrying the house since it is costing him so much and he is only there part time.
The other option I was looking into would be refinance us onto the loan and then have him quit claim. While he would remain on the refinance he would be removed from the deed? If anyone is familiar with the process that would be great to get some info. Searches get a bit tricky for this topic. This option, if possible, seems to be more favorable for us as it would allow us to avoid PMI but it has the obvious draw back of making him still liable for payments until we were able to refinance again. Although he might just be happy to not have to pay a few grand a month in mortgage and taxes.
Are there any other potential options? I understand the safest is most likely to just do our own mortgage. I will be involving a RE lawyer to cover our butts but I want to sit down and discuss the options with my wife and then her father before getting to that point. This way we can see if this would even work for him and us. Any input would be greatly appreciated.
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