buying the house I live in from my mother without down payment
Hi.
I'm new to this forum.
I have a question I can't find the answer to.
Almost 4 years ago I separated from my husband and relocated with my children. I rented a house for 2 years before wanting to buy a house that was going up for sale on my street. But because my divorce was not complete, I had a high joint line of credit with my ex-husband and a mortgage from my matrimonial home on my credit so could not get approved. I was told it was basically because of the line of credit that didn't allow me to be approved for the mortgage. (it was $40 000) Instead of losing the house, my mother essentially bought it, put her name on the mortgage (solely) in a 2 year mortgage. I provided the down payment, lawyers fees, etc and I pay her the mortgage amount every month. The thought was in 2 years I would no longer carry the debt and we would change it to my name. We never thought at the time to find out how that would work. I recall something about her stating she lives in the house X% of the time to avoid it being a "secondary" house. At the time, she did stay here a fair amount as I was working full time plus a full time student and she was my babysitter so would stay the night a few days each week.
Fast forward 2 years to now...line of credit is paid off, house has sold, my credit score is good (not great but good) and my household income is good so I assume I could qualify for the mortgage on my own at this point. The mortgage is up for refinancing in February.
How do we go about having her "sell" the house to me. It is currently financed with a mortgage broker. But I don't have another down payment and don't know where I would get one. Is it possible for me to mortgage the house without one? Is there any way to avoid having to come up with another down payment?
FYI - she doesn't have interest in cosigning with me. The 2 year mortgage really maxed out her credit availability and I know she would not be favourable to staying listed on the mortgage.
Any help would be appreciated!
I'm new to this forum.
I have a question I can't find the answer to.
Almost 4 years ago I separated from my husband and relocated with my children. I rented a house for 2 years before wanting to buy a house that was going up for sale on my street. But because my divorce was not complete, I had a high joint line of credit with my ex-husband and a mortgage from my matrimonial home on my credit so could not get approved. I was told it was basically because of the line of credit that didn't allow me to be approved for the mortgage. (it was $40 000) Instead of losing the house, my mother essentially bought it, put her name on the mortgage (solely) in a 2 year mortgage. I provided the down payment, lawyers fees, etc and I pay her the mortgage amount every month. The thought was in 2 years I would no longer carry the debt and we would change it to my name. We never thought at the time to find out how that would work. I recall something about her stating she lives in the house X% of the time to avoid it being a "secondary" house. At the time, she did stay here a fair amount as I was working full time plus a full time student and she was my babysitter so would stay the night a few days each week.
Fast forward 2 years to now...line of credit is paid off, house has sold, my credit score is good (not great but good) and my household income is good so I assume I could qualify for the mortgage on my own at this point. The mortgage is up for refinancing in February.
How do we go about having her "sell" the house to me. It is currently financed with a mortgage broker. But I don't have another down payment and don't know where I would get one. Is it possible for me to mortgage the house without one? Is there any way to avoid having to come up with another down payment?
FYI - she doesn't have interest in cosigning with me. The 2 year mortgage really maxed out her credit availability and I know she would not be favourable to staying listed on the mortgage.
Any help would be appreciated!
