Profile picture for nancywalters7

How do I find out more about Non-arms lenght mortgages?

My husband and his 4 siblings own my late father in laws house, it was deeded to them in 2005.  We would like to buy out the 4 siblings while keeping out current house.  We would rent out our house and live in dad's.  What type of mortgage is best for us and where do we start?  Any and all help is deeply appreciated.
  • October 09 2011 - Riverhead
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Answers (2)

Profile picture for sunnyview
You simply need to buy out your siblings with the new mortgage. As long as the house is not underwater and you can qualify for the mortgage, there should not be an issue.

I think the first thing you should do is see if you can qualify on a rough basis for the house. You can run a calculator to see if you are in the ballpark. The next step would be to find out how much the house is worth on a quick sale and get your siblings to agree to that buy out price based on an independent appraisal for purchase. You will need a contract to give to your lender. Then, you just need to find a lender in your area to help you.
  • October 09 2011
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It is really not that difficult.  You would treat it almost like your husband and his 4 siblings are getting divorced.  You (or your attorney) would write up a settlement agreement stipulating what the other 4 would receive and you would do a refinance for that amount (plus closing costs) if you wish.  Of course credit, income, LTV come into play.  Not sure how close you currently live to the father's house but be prepared to explain why you are moving to this home so that it is considered your primary residence and not an investment property. 
  • October 09 2011
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