My husband and I were in the process of try in ng to buy a mfg home. Our original chosen house was 72k, we went through the company to find a lender & came out denied for the 1st Loan, and approved for a 2nd loan but with a 8.89% interest rate. We quickly declined,as we dont want to be so upside down & have such high payments at that interest rate. Well a family member inquired of us about the cost of our chosen home & we told her. She offered to essentially buy it for us. We didnt listen very well bc we were trying to tell her no, we cant let her do that and it was nice but we cant. Well she made a good point. She is older (84 or 85l and she plans in leaving everything to her grandson when she passes, she currently has some CDs for him but the interest rate is 1.10% I think she said. So she is willing to essentially make us a loan with a 2 or 3 % rate so her grandson will essentially end up with a little better return, over time. Now its sounding a little less like charity & maybe we would consider it... my questions are; How do we make it legal? I dont want to hand her cash every month & I want to make it just as formal as a bank loan, if possible. Mortgage interest is tax deductible, do we lose that using this route? How do we factor in the extras, that get paid every month like a regular mortgage, I've never had one so I may miss something, like home owners insurance (we would just pay) but there is other stuff right like pmi and taxes, do we just pay it ourselves? It is extremely generous of her but we feel like we are taking advantage, we feel bad, but this could be a potential win win, maybe. Has anyone ever used a person as a lender Instead of a bank, what am I missing as far as discussion/decision factors?
Submitted October 05, 2018 at 03:10AM by bdh1987 https://ift.tt/2pElohn
