Purchasing a home with inheritance income.

[Quiltinqueen]

Alabama

I will be inheriting approx. 1 million dollars when my mother passes away. I live in Idaho now and will be moving to the Mobile Alabama area. I will when my mother passes receive a monthly income of $6,000 per month for 36 months. My mother also has 9 rental properties that will be sold when she passes. I will receive 70% of the net profits from the sale of each of these homes. My mother also has annuities that I will also inherit. I also receive social security each month.I have spoken with several mortgage lenders, and there seems to be some kind of problem. They all keep telling me that when it comes to inheritance income I have to prove to them that I will have this monthly income for 36 months. So, that being the case.....example: I pick out a home tomorrow, make an offer, offer is accepted. Closing date will be 60 days out..........so when I show up on the closing date to sign the final papers I can then only prove 34 months of this income. There has got to be a way around this. My plan was to take out a home loan, then make the payments with my income and as these homes I will inherit sell then put that money towards paying off the home loan, along with any other monies I will receive. I just can hardly believe that with the $6,000 coming in each month plus the $1,850 per month I get in social security why I couldn't purchase a home. Just doesn't make sense to me. Someone please let me know what you think. There has to be a way around this.

 

[LdiJ]

Alabama

I will be inheriting approx. 1 million dollars when my mother passes away. I live in Idaho now and will be moving to the Mobile Alabama area. I will when my mother passes receive a monthly income of $6,000 per month for 36 months. My mother also has 9 rental properties that will be sold when she passes. I will receive 70% of the net profits from the sale of each of these homes. My mother also has annuities that I will also inherit. I also receive social security each month.I have spoken with several mortgage lenders, and there seems to be some kind of problem. They all keep telling me that when it comes to inheritance income I have to prove to them that I will have this monthly income for 36 months. So, that being the case.....example: I pick out a home tomorrow, make an offer, offer is accepted. Closing date will be 60 days out..........so when I show up on the closing date to sign the final papers I can then only prove 34 months of this income. There has got to be a way around this. My plan was to take out a home loan, then make the payments with my income and as these homes I will inherit sell then put that money towards paying off the home loan, along with any other monies I will receive. I just can hardly believe that with the $6,000 coming in each month plus the $1,850 per month I get in social security why I couldn't purchase a home. Just doesn't make sense to me. Someone please let me know what you think. There has to be a way around this.

Why not wait until the rental properties sell, and then just buy a home for cash?

 

[Quiltinqueen]

Well, yes, it may come to that. I just didn't want to have to move twice. Also, I'm finding that it is really hard to rent when you have pets. I'm now living in one of my mothers rentals so when she passes I will need to move, so this home can be sold. This is so frustrating to me.

 

[Zigner]

Well, yes, it may come to that. I just didn't want to have to move twice. Also, I'm finding that it is really hard to rent when you have pets. I'm now living in one of my mothers rentals so when she passes I will need to move, so this home can be sold. This is so frustrating to me.

Buy the home you are living in. That can be arranged through probate and escrow.

 

[Quiltinqueen]

I am only here because I'm an only child and I needed to take care of my mother. I do not want to stay here any longer than is absolutely necessary. I dislike it here that much.

 

[Zigner]

Then don't complain about having to move - you are making the choice.

 

[LdiJ]

Well, yes, it may come to that. I just didn't want to have to move twice. Also, I'm finding that it is really hard to rent when you have pets. I'm now living in one of my mothers rentals so when she passes I will need to move, so this home can be sold. This is so frustrating to me.

You don't have to move in order to sell the house. Many homes are sold while someone is still in residence. Or, you could even sell that home last, after the others have sold and you have bought your house.

 

[Zigner]

You don't have to move in order to sell the house. Many homes are sold while someone is still in residence. Or, you could even sell that home last, after the others have sold and you have bought your house.

I suspect that the problem is that the timing of the sale(s) is not within the OP's control.

 

[Quiltinqueen]

Zigner.......I'm not complaining here. I just thought that there should be a way around this issue. I have no control over when/how my mothers homes will be sold. I am not the Executor of her estate. Where I live now is an extremely rural area that gets very cold in the wintertime. I do not like the cold as I've lived where it is warmer most of my adult life. I'm very sorry if some of you thought l am just complaining. I've done a lot of research on renting a home and waiting for the houses to sell before I buy, but where I'm wanting to relocate apparently.......the only rentals that appear to accept pets are in sub-standard housing. I also didn't want to sign a years lease on a rental, and that is another thing I'm running into. I was just trying to find out if there was another way around being able to buy when I leave here. That's all.

 

[adjusterjack]

I just thought that there should be a way around this issue.

What issue? I'm confused. If you are talking to mortgage companies now about what might happen in the future after your mother passes, you can forget about getting any reliable information.

When you are ready to fill out an application for a loan, the lender will want to know how much money you have at that moment and how much your then current income is and where it is coming from.

If the executor is going to write you a check for a million dollars, you'd be foolish to do anything but wait for the check (no matter how cold it is) and buy a home for cash wherever you want to live.

If you need to borrow money to buy a home before you get that million, the lender is going to want documentation of income and ability to pay and there is no way around that.

 

[BuyLowSellHigh]

If you really don't want to have to move twice there are some more costly and complicated options. You could lease to own. You could find an owner willing to finance.

A good real estate agent could help you with the process. Commit to working with them to purchase your home and they will find a way to get the deal done because they like to earn their commission. They may also be able to find a lender willing to work with you.

 

[Quiltinqueen]

I guess I just thought that with $7,800.00 per month coming in I could buy something when I left here. I have actually thought of the lease with option to buy thing before and I may need to look into that. Also, owner financing might work for me too. And even a balloon payment kind of thing with owner financing might work. I just didn't realize that this needing to prove 36 months of this income was such a hard and fast rule, but guess it is.

 

[Zigner]

I guess I just thought that with $7,800.00 per month coming in I could buy something when I left here. I have actually thought of the lease with option to buy thing before and I may need to look into that. Also, owner financing might work for me too. And even a balloon payment kind of thing with owner financing might work. I just didn't realize that this needing to prove 36 months of this income was such a hard and fast rule, but guess it is.

At THIS time, you don't have $7,800 in income per month. What if your mom decides tomorrow that she would rather give everything to the Church of the Flying Spaghetti Monster? Then you have NO expected income from that source. What you are doing is counting your chickens before they've hatched.

 

[Quiltinqueen]

At THIS time, you don't have $7,800 in income per month. What if your mom decides tomorrow that she would rather give everything to the Church of the Flying Spaghetti Monster? Then you have NO expected income from that source. What you are doing is counting your chickens before they've hatched.

 

[Quiltinqueen]

My mother is 93 years old, she has Alzheimers and is failing fast. Her will/estate cannot be changed at this point as she is not competent. So that will all remain the same. As stated in her will, two months after her death I will start to receive the monthly income. Also, immediately upon her death the nine homes she rents will be put up for sale. I am not worried about the will getting changed at all.