I’m looking to purchase a home. I have enough for 20% down and I qualify for a traditional mortgage but my dad suggested he lend me the full cash to make the sale that way I have more negotiating room and can close faster. Then once I close I can refinance it and keep 20% in the house and pay my dad back for the 20%. Is there a downside to this? Will it get messy?

like
Posting as :
works at
You are currently posting as works at

Refinance rate typically is a bit higher than purchase rate, but you can probably make that up during negotiations.
Lender might question your source of funds during refinance - make sure the gift/loan from your dad is well documented.
Does your dad charge you any interest? :-)

like

He wouldn’t. Which I assume would have to be added to the amount of gift

Sounds messy tax wise? Also consider how to handle if it doesn’t appraise at the refi for what you bought it.

You will also end up paying some closing fees twice - once for the purchase and then again for the refi

This is a great idea if paying in cash will get you a considerably lower purchase price. If so then definitely take him up on this!

Related Posts

I am just wondering, because my husband and I just started looking for houses based on schools. Why is this kind of data published? How is it useful to anyone? Isn’t it racist?

Post Photo
like

How to take into valuation excess cash held by a separate unit but under the same company ?
I am valuing the unit that owns the cash. Will the excess cash be added to the valuation figure ?
Thanks

like

Thoughts on whole life insurance? Worth it?

like

Random question: does everyone have 5000 pounds of saving? 😂

like

Is it possible to have $0 withheld on fed income taxes? I was only taxed for social security and medicare…i just realized :(

like

I ordered a Tesla model 3 SR in April and I am able to take delivery this weekend, however I’m now unsure of whether it’s the right move financially. I have a lease on a 2020 BMW X3 that will end next month and was wondering if I should just buy that out and drive it for a few years. If it makes a difference I’m in SoCal so gas is $$$, but no EV charging in my apartment.

Tesla: $830/month + charging and insurance
BMW: $600/m + $150 gas + maint/insurance

Any thoughts? Is the Tesla worth it?

like

I’m about to leave my current position and I want to move my 401(k) that the firm is holding to something my closer to me. Should I move it into a Roth, Traditional, or something else?

like

I plan to retire in about 10yrs - managing my own luxury resort in my home country (somewhere in Africa). I just got introduced by my parent to a 100 acres land for about $100k. Anyone have an idea how i can acquire a loan in the U.S for a property not in the U.S?

like

How risky is it to buy Allen Edmonds online given several different size options? Do I have to go to a store?

Anyone know what happens if your credits score isn’t high enough to get the corporate Amex?

like

Hey, I’m thinking of getting a Mazda CX-5 2022. Is it a good car? Is it worth the price? Any problems I’ll run into in the future? Please talk about it! This is my first car and I’m super anxious and need to make a deposit soon! Thanks. Is it expensive to maintain?

like

My partner bought a new truck earlier this month. We’re hoping to joint-purchase our first home next spring. Is there a “best” time to get pre-approved for a mortgage? When should we start the home buying process?

So far we’ve kept our head in the realtor apps to see what the market is doing.

Rent just went up, pressure is on!

like

What is everyone’s top 1 or 2 favorite books on personal finance? I’m always looking for a new one to bring into the fold of what I’m doing

like

Washington state, single family home, roughly 2,000 sqft and valued at 850k. Home insurance quote is $1,450 per year. Reasonable? Or should I shop around?

like

Best options for a 30 year fixed rate mortgage at a small bank in MA.

like

That couple who asked for cash for their mortgage downpayment at their wedding is getting a lot of shit but I feel like that's honestly really smart. Why not ask for what you really need? Especially with prices how they are and only getting worse.

like

Let’s finish this up strong! What are your year-end self development plans?!
We have our last session of the year of our group/guest financial education cycles at our Downtown Toronto office this Saturday. We go through our first financial education session that we talk about basic to higher level of financial information; from saving, investing, risks and returns, registered accounts, etc. There is no cost and no obligation. If you are interested to attend in-person or via Zoom, let me know.

Post Photo
like

When do you current renters want to buy a place in Chicago? And what neighborhood and price would you look at?

like

Guys, im getting a annual fixed pay of 18 L. But I am paying a tax of 20 k every month .is this normal ??? or i m paying more tax ??

i m showing 1.5 l in 80 c and 2.4l as house rent annually...but still i am paying a tax of 20k

Give me some suggestions

like

In a really weird pickle right now. I filed my ITR and paid due taxes, but the filed return isn’t showing up in my profile at all, even after successful payment. I have reached out to IT dept by raising a grievance, and through email and Twitter, but haven’t heard a word in a month. Is there anything else I can do?

like

More Posts

Is OW hiring in Healthcare practice?

Did anyone hate wedding planning? I’m constantly considering cancelling the wedding cuz I honestly can’t believe how much drama it’s causing with all family members.......

like

I’ve been struggling trying to get a plumbing/plumber’s apprentice job. Any suggestions would be greatly appreciated.

like

Hi All,

I'm a mechanical design engineer with 3 years experience in EV industry. I'm looking for a job change in the same industry. Please let me know if you have any leads.

Thanks

like

Why isn't CFR posting the relocation policy officially on mail or confluence?

like

Anyone here who have given or know Core Java Developer Interview questions or topics for Netcracker for Experience Candidate

Thoughts on Chiat LA as an agency? Curious internal and external opinions…

like

What are some ways that you organize your emails so that you are able to quickly reference drafts that have either been sent to the client or op counsel and otherwise to identify important transactional documents (I.e. signature pages, execution versions and executed docs) that have been sent out by the team? I’m a first year and just learning my role on the team, and recently I was the only associate on a deal and reported directly to the partner. (More in comments)

like

What's with the Tezos pop? Up 15% today?

like

How many days before joining date onboarding team contacts.

like

Hi Everyone,
I will be completing 1yr with GDS in the next month.
Will I receive any gift/coupons for completing 1year?

funnylikesmart

Hi Guys,
Can anyone give me reference for this job in Nagarro ?

Post Photo
likeuplifting

Is you firm hiring for strategy/CDD roles??

like

Can anyone refer me for available job opening in India

Ok ok plot twist: he’ll propose to Madison and she’ll say NO! Cause she realized how different they truly are... then he goes after Hannah cause his mom told him she was an angel sent from above 😂 🤦🏻‍♀️

like

Is Capgemini calling employees to work from office?

like

After competency based interview with AVP and onsite Tech lead....what all other round expected for Application support profile ?

like

Just had an amazing interview at one of the top Japanese banks. Should I not get ahead of myself? Already visualize myself in the role!

like

Hi Fishes,

I have holding offers on Renault Nissan (RNTBCI) , LTI and CTS for 15 LPA - java development.

Which one will be the best option for learning new technology and Job security?

like

What's the salary range for qliksense/qlikview developer for 6 yoe?

like

Additional Posts in The Real Estate Bowl

I get 2-3 offers a week on one of my rental properties. People just call up begging for me to sell 🤦🏼‍♂️ in Austin. Happening to you guys too ?

like

Moved into first home and planning to flip in couple of years. Does not want to spend much on blinds.From where I should get the cheapest blinds?

like

I would like to learn more about development and real estate. Can anyone recommend any books or courses that you think are informative. Eventually I would like to own a few apartment buildings, but I know there is a lot I need to learn 1st. Any advice appreciated. 

like

Anyone have a stud Charles Schwab mortgage broker they recommend? Need an all-star for a $1m+ mortgage

like

I’m now in month 5 of waiting for my mortgage loan to be approved. I had hoped to be moved in months ago. Is there anything I can do to get the bank to speed up the process?

like

In your experience, how accurate is Credit Karma? I’m looking to buy my first property in the near future and am basing my mortgage rate estimates on my TransUnion / Equifax scores.

like

Where do you typically post your rentals? Looking to list my townhome in Class A.

like

Do rental markets really get slow in the winter? What about now with how much people are holding off buying because of interest rates, do you think the rental market may remain strong? I'm in Colorado.

A little short on downpayment for my primary home. Does getting a HELOC on an investment property make sense? Specifically, will the ‘hard’ credit check limit my options for the new mortgage?

I own a property that I'll eventually turn into a rental (not yet being rented out). I'm going under contract for another property that will be my primary but it is almost 8 months out. Can my lender for the new property already indicate in the forms that my 1st property is an investment property? Or can they mark the 1st one as a second home in the loan application? Does it matter that it's not yet being rented out (but will be by the time the new property be ready)? Anything else I should do?

like

Has anyone used Lowes flooring installation service? Got a quote for $23k for 1500 sqft from local company and that feels high

like

Hey Folks - I’m planning to buy my first home in a metro that I want to move away in 5 years or less. In this case, is it wise to choose an 5 year ARM rather than 15-30 Y loan?

like

professional home cleaning 2 bedroom house. looking for recommendations for professional cleaners to clean a 2 bedroom house.. need a receipt post cleaning as a proof of service for my owners

like

Is it typical to get equity in ur house off the bat... Like statistically do sellers accept offers below appraised value or is that the rare ideal situation?

like

Is it worth to buy a place in NYC?

like

Looking for a sanity check. I’m under contract for a condo ($250k) at 6% for 30 year only 10% down. HOA at $300 per month. People keep getting me worried that I made a mistake buying now. I feel secure about my finances (base salary $100k) and no other debt. I think I’ll be ok, but thoughts from real estate experts in this group? Feeling stressed and excited at the same time 🙃

like

Does anyone have experience with wholesaling? Looking to see if the rewards outweigh the risks. What are the main risks outside of having to purchase the property if you cannot find a buyer?

like

Anybody know of a website where I could see rental vacancy rates, historical trends etc. if I am willing to invest in a specific zip code?

like

What is the best place to look for a house or condo to rent in the DC area?

like