All Forum Posts by: Jeffrey Hill

We are good friends but that's also not an issue for them because they are a dual veteran couple. They are just going to use their 2nd VA loan to buy their next one while this one is tied up.

Hi Elias, 

Glad to see another Mount Vernon native. :)

Yes, that does all make sense. I don't think we are going to be able to come up with $50K before they're going to need to move and no, definitely no family members able to gift $50K. 

They do seem possibly open to seller financing the difference of $172K. Is there any way that that is doable? Perhaps we "buy" the house from them for the $328K balance to satisfy the lender and don't need a large down payment and then have a separate contract with them to pay $x per month until we've paid the full $172K amount. Have you seen any creative financing like that before?

Hello,

Just wondering if anyone can help me figure out a lending strategy.

Here are the details:

A friend wants to sell us their house that currently has a VA loan mortgage.

They are a dual military couple so will use their other VA loan for their next house.

They are willing to let us assume their current loan.

Mortgage balance is $328K. They want to sell for $500K. This leaves a $172K gap. From my understanding, normally with a VA loan assumption. The lender wants you to put the entire difference down as a down payment, so $172K. We do not have that much to put down. It sounds like some lender will allow you to get a 2nd mortgage for that $172K amount and some will not.

Does anyone know of any lenders that can work with this? Or of any alternative strategies to make this work?

We thought about doing seller financing for the $172K but it will likely take 10+ years to pay the full amount at any sort of reasonable monthly payment. Maybe we can do seller financing for the $172K and then get a traditional mortgage after the fact with delayed financing? Or a personal loan if interest rates aren't cost prohibitive? I don't know, is this an impossible deal or is there some way to make this work?

Let me know if you have any suggestions, thanks.

Has anyone ever bought a house from a family member using a "Gift of Equity"? I'm in the process of purchasing a house from my father law. He is willing to sell for $225K and we think it would appraise at $300K. Our lender has suggested we do a Gift of Equity to cover the downpayment and closing costs. FIL is skeptical and concerned that it's just a way for the lender to get their hands on the equity but that's not how the lender explained it works. According to the lender, the equity would still be intact and nobody will have to pay a dime in the whole transaction. I mean, at the end of the day we would get a $225K loan from the lender and the house is still worth an assumed $300K which means we still have the equity, correct? Am I missing something here?