How can i get information on refinancing a home after i purchase it out right to pay back family?

Dalton
I would like to purchase a home that a close friend has that is going into foreclosure. I am able to get the money to purchase this home from family if I can assure them I could get it back to them by refinancing the money out. I would purchase the house for right under 200k and it is worth a little over 400k. So I would not take out all of the equity in the house out. Only enough to pay back family and have some money for appliances and furniture.

Randy
Assuming that your figures are correct and not just a pipe dream, you can go to a mortgage broker and arrange for a mortgage on the property. If you are buying the property for $200K, you would need about $40K to get a mortgage at a reasonable rate without having to pay mortgage insurance. If the home is appraised at $400K, and you are paying $40K, there should be no problem financing it with a $160K mortgage, providing you have income with which you can repay the loan.If you are counting on family to provide the entire $200K, you still need the ability to repay the debt, and you need an income from which to make those payments. Keep in mind that owning a home involves additional expenses, such as maintenance, property taxes, insurance, and monthly utilities. If family members are willing to invest the entire $200K purchase price and the home is appraised at $400K, a mortgage company will be happy to refinance the original debt. But if the $400K is just in your imagination, you may find that an appraisal is not as high as you think. You need a professional appraisal in order to know what you can finance.

Delta
Talk with a mortgage lender now. You will still have to qualify for a mortgage and that is getting tougher and tougher. So although you will have equity in the house, you also have to have the ability to repay the loan and lsatly the house has to be in a conforming condition. There are standards that the bank requires you and the house meet before they will lend you any $.