Do I have to include gifted property on mortgage app? (insurance, loan)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If I was gifted a house by my mother for estate planning reasons, do I have to include that info on my loan application? I do not need or want to use it to qualify for a loan.
If the reason you are considering this is becuase the home that was gifted to you by mom is simply a generic asset that would be less important than if the home is rented out and generates a signficant portion of the income that you are using to qualify for the mortgage you are applying for...
If I was gifted a house by my mother for estate planning reasons, do I have to include that info on my loan application? I do not need or want to use it to qualify for a loan.
Yes, all property owned must be disclosed on the bottom section of page 3 of the loan application. The taxes and insurance on the property will be counted against your debt to income ratios (I assume the property is owned by you free and clear).
Many programs, or features of programs, are only open to first time homebuyers, which you no longer qualify for. Non-disclosure could create a real touchy situation for you. But even if you are an experienced homeowner, yes, disclose.
My mortgage broker just told me that, since the house has no mortgage and my mother has a life estate to live there and is responsible for taxes and insurance, I don't have to include it in my application. Technically, it would probably help me with the loan approval to include it, but I'd rather keep it separate.
I'm running into somewhat like this now. I have an inherited home that I am currently selling, while I am also purchasing a new home. I told the bank NOT to include the sale on the inherited home as I did not need the proceeds from that sale. Yet they did it anyway and added it on my commitment letter. Now I am jumping through hoops to get it taken off as the inherited home is not selling in time due to various delays.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Need more details...
