Help! with unique Home buying and mortgage issues

[ad1das101]

What is the name of your state? Pennsylvania

My father and I are in the process of purchasing a house and need some advice. First off, we are purchasing the house (both names on title) with a cash offer for the full price in order to speed up closing and make the offer more attractive to the seller (most of the money will come from my dad). After we close on the property we plan on doing a cash-out refinance where I will take a loan for 50% of the purchase price and give that money back to my father. I will be the only one living in the house. I am wondering if this causes any legal or tax implications with all this money transferring hands a few times. I was also wondering being that both our names are on the title if we both have to be on the mortgage. I will be the only one paying the monthly mortgage payments. I was also wondering further down the line if I decide to purchase my father’s half of the property in order to obtain full ownership what the process would be and if there is anything I should be concerned about. Would we just be able to transfer title to myself or if I am married by then to myself and my wife and then I pay him what he had invested in the home. I’m not sure if that would fall into capital gains tax issues. Please also comment on any other issues that you see might be a problem.

[JETX]

Originally Posted by ad1das101

I am wondering if this causes any legal or tax implications with all this money transferring hands a few times.

There could be numerous legal and/or tax considerations to what you are planning on doing. However, without a COMPLETE and extensive review of all the terms... and financial status, there is no way that anyone can reliably answer. Take your plan to a local attorney and/or CPA for review and advice.

I was also wondering being that both our names are on the title if we both have to be on the mortgage.

That depends on the specific requirements of the lender... but normally, yes, all title holders would need to sign.

I was also wondering further down the line if I decide to purchase my father’s half of the property in order to obtain full ownership what the process would be and if there is anything I should be concerned about.

That should be the least ordeal of your 'plans'.

Go spend the few hundred $$ and have a local attorney and/or CPA review.