Refi to Buy… Too Soon?

Life doesn’t always go as planned, and sometimes what you need is a little help to get back on track.

In Tracy’s case, she had a rough couple of years and was looking to get a fresh start. Tracy had recently gone through a divorce, her credit took a dive, and she was moving out of the city and closer to her relatives in order to raise her daughter.

She had a solid job and could afford to pay her mortgage, but after the hit her credit took from her divorce, it would take a few years before she would be able to qualify for a mortgage again. Lucky for her, she had a father who believed in her and wanted to help her get back on her feet again…BUT he already owned his own house and was living off of his retirement.
The approach was a little bit outside the box, but what we decided to do was have her father purchase the property as an investment property and put Tracey on the deed and title. Tracey’s dad had the money available to put 20% down on the mortgage but he didn’t have the income to support the additional debt. By going the investment route we could apply market rents to the property he was acquiring that would lower the debt to income.

This approach worked perfectly and John now owns an investment property that he plans to sell to Tracy when she is ready — and since they are father and daughter, there will be no transfer tax whenever she does buy the property.

I love providing solutions to situations like Tracy’s…if you have a unique situation let’s talk!