Purchasing From Yourself (Sort of)Two individuals own a home outright. The home was purchased with cash more than a year ago; the purchase money came from a first loan secured by non-real estate assets. This first loan is not secured by the home.The individuals want to obtain a mortgage in place of their existing first loan. To do so would be considered a cash out refinance and would require 20% equity in the house. They cannot put down that much money.Consider this alternative: the first person quit claims his interest in the home to the second person; then the first person obtains a mortgage loan to purchase the home from the second person (the purchase price being essentially the original loan amount - no funny business with appraisals, etc.); the second person uses the proceeds of that sale to pay off the original loan. Ownership now rests with the first person; the home is secured by a first mortgage; and the loan secured by non-real estate assets is paid in full.Why not? Perhaps a "red flag" will be raised because the first person's current address will be the same as the property address he is buying, but so what? October 18 2013 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.