is this legal?

What is the name of your state? texas

i want to finance a manufactured home for my daughter because her credit is poor.they said i could finance the home as if i'm buying it for myself and state that i am leasing my current home to my daughter.am i getting myself into some hot water if i agree to this?

[FarmerJ]

If your going to get a loan from any kind of lender you couldnt legally sell the property to your child . NOW if your going to pay cash for the home and own it outright then you could easily sell it to your child on a contract for deed wich a attorney can set up for you .

[HomeGuru]

[quote]Originally posted by FarmerJ
[b]If your going to get a loan from any kind of lender you couldnt legally sell the property to your child .

**A: why not?
********

NOW if your going to pay cash for the home and own it outright then you could easily sell it to your child on a contract for deed wich a attorney can set up for you .

**A: a contract for deed has nothing to so with paying cash and having no mortgage or having a mortgage on the property.

[Souix]

Originally posted by duane33
What is the name of your state? texas

i want to finance a manufactured home for my daughter because her credit is poor.they said i could finance the home as if i'm buying it for myself and state that i am leasing my current home to my daughter.am i getting myself into some hot water if i agree to this?

**Possibly if the bank found out that the mobile home is non owner occupied, they could call the loan, meaning they would want you to payoff the loan on demand. Who is "they"?

Ok...in detail......I was told that I have to show the home that i am financing as my primary residence and show that i am going to be leasing my current residence to my daughter. We were going to do this to avoid a HUGE down payment and VERY high intrest rate because her credit is poor. Acually she will be living in the new home and I will be staying at my current residence. Why would it be illegal for me to allow my daughter to stay in this new home even if I do list it as my primary residence. After all if the payments are being made at both residences how can anyone tell me who should live where?

[HomeGuru]

[quote]Originally posted by duane33
[b]Ok...in detail......I was told that I have to show the home that i am financing as my primary residence and show that i am going to be leasing my current residence to my daughter. We were going to do this to avoid a HUGE down payment and VERY high intrest rate because her credit is poor. Acually she will be living in the new home and I will be staying at my current residence. Why would it be illegal for me to allow my daughter to stay in this new home even if I do list it as my primary residence. After all if the payments are being made at both residences how can anyone tell me who should live where?

**A: that is not the point. The point is you would be lying on your form 1003 loan application. Do you realize that such action would be considered fraud and subject to Federal action ie. fines and imprisonment? Whoever is telling you to do this really wants you to have a new address. The address of a Federal prison.

[Souix]

Writer I have a solution for you that is perfectly legal, but you need to speak to a loan officer to get all the details and to see if you qualify for such a thing. There ARE no money down loans available for non owner occupied buyers. Your credit has to be A+ though. The mobile home has to be attached by a permanent foundation to its own lot and cannot be older than 1976, you're better off buying a site built home anyway, they appreciate more.

Thanx for the advise. Won't be going to prison thank you!!

[BrokerRE]

What if you really intend on purchasing this new property for yourself, and leasing your daughter your old home?

Then the next day after the closing, the daughter says she hates living in the old house, and so you change your mind?

Can it be proven beyond a shadow of a doubt that you hadn't really intended on living in the new home?

Will the mortgage company really try to press fraud charges?

The answer is a resounding NO, under these circumstances.

You make every payment on time.

If you make every payment on time, you'll never hear another word about it.

I don't think anyone is going to tell you that you should lie, including me.

If every payment is made on time, and in full, then the bank won't care. If they don't care, then why should anyone else?

Make sure that you have the financial ability to cover both payments yourself, because it appears your daughter doesn't have the ability to financially responsible.

good advice,thanks

[HomeGuru]

Welcome back BrokerRE.

[BrokerRE]

Thanks.

[HomeGuru]

Writer, what did you decide to do?