Acquiring a property from family

[Rik Wallace]

I have VERY little knowledge regarding the intricacies of acquiring a property from a family member and am looking for advice. I won't dive too deep into the details but short story, my grandmother has been moved to a home and her house will be repossessed by the bank in the coming months. The outstanding balance on the home is approximately 340k and the ARV is $480 +/- 20k. My question is how do I assume the loan without having to pay a down payment for a new investment mortgage?

Any advice is welcomed. Thank you

Oh and this house is in Salinas, CA

[Nick G.]

@Rik Wallace If you can qualify for a loan, the easiest way is to simply have her deed you the property and pay off her loan with your new loan - and since the LTV is decent, you may not need to bring in a down payment. Probably could be accomplished through a basic refi.

If you can't qualify for a loan, there are other options, all more complex, and often focusing on some type of seller (wraparound) financing. These scenarios typically look something like this: she effectively gives you the property or adds you to title, her loan remains in place, and one of you brings the loan current and resumes making the payments on it. 

There are risks involved. If I were in your shoes, I would start browsing the forums.  A lot. Learn about wraparound financing, seller financing, subject-to financing, family ownership transfers, etc.

Good luck.