Buying Property from Parents

[trulfe]

Im about to buy a house from my parents that is currently a rental property and has renters. I want to buy the property and continue to rent it out to the current renters but I want to purchase it as a vacation home because who knows what Im gonna do with it in the future.

Since its my parents home, I feel that I should be able to purchase it from them without having to pay the extra 1.5 points that lenders usually ask for rental properties. Is there any way around this??? Should I just buy it as a vacation home???

Any help would be appreciated.

 

[FeathersMcGraw]

Mortgage companies don't care who the seller is. They only care that you're borrowing their money. You're not going to get any discount points there.

If you're planning on purchasing the property and maintaining it as a rental, and using it as a vacation property, it won't qualify for the lower-interest primary residence rates. No discounts there, either.

 

[Syringer]

I bought Park Avenue from them once. Worked out well.

 

[trulfe]

bump

 

[mAdD INDIAN]

Originally posted by: trulfe
Im about to buy a house from my parents that is currently a rental property and has renters. I want to buy the property and continue to rent it out to the current renters but I want to purchase it as a vacation home because who knows what Im gonna do with it in the future.

Since its my parents home, I feel that I should be able to purchase it from them without having to pay the extra 1.5 points that lenders usually ask for rental properties. Is there any way around this??? Should I just buy it as a vacation home???

Any help would be appreciated.

Isnt it possible that your parents that give it to you as a "gift" and you can pay them back privately? As in make up your own montly payments to them.

 

[trulfe]

well, the property was purchased by them about 20 years ago and is now fully depreciated. They are going to sell it to me cheap so they can purchase another property and start the depreciation tax write off again. So the private payback process wont work.