Answers (2)
- makcck
- Contributions:2
What exactly is a contract for deed? And how can that be structured? We were planning on financing the house through our bank. We are in Iowa. Thank you so much for your quick response!
- Michael Emery, "MikeEmery"
- Contributions:8078
Contract for deed would work.
You could purchase the home and then sell it to him on a contract for deed at an interest rate just slightly higher than what you would receive for the money in a C/D or other form of investment. However if you were planning on financing the property and then reselling it, that could be problematic. You would need to talk to a mortgage person to fully understand the ramifications of that process.
Just remember that your son could not collect the First Time Homebuyers Credit or the repeat buyers credit if he buys the home from you. This is not allowed by the IRS. However you could be on title and on mortgage along with your son and that would allow your son to collect the credit. But buying a home directly from a relative is disallowed by the IRS for this specific program.
You could purchase the home and then sell it to him on a contract for deed at an interest rate just slightly higher than what you would receive for the money in a C/D or other form of investment. However if you were planning on financing the property and then reselling it, that could be problematic. You would need to talk to a mortgage person to fully understand the ramifications of that process.
Just remember that your son could not collect the First Time Homebuyers Credit or the repeat buyers credit if he buys the home from you. This is not allowed by the IRS. However you could be on title and on mortgage along with your son and that would allow your son to collect the credit. But buying a home directly from a relative is disallowed by the IRS for this specific program.
I want to buy a house on auction. Then sell to my son. What's the best way to do this?
Our son cannot get a loan because of his ex-wife ruining his credit rating. (She failed to take his name off of mortgage and then fell behind in payments.)We would like to buy a house that is on auction, and sell it on to him on contract. Would this be the best way to go? Or just rent with option to buy, or what?
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