If my parent purchased a house can we refinance with me as a coborrower then refi later and take her off?

China
My mother purchased a house five years ago. She and I lived together while I went to dental school. She (age62) no longer wants to make the payments on the house and I want to finish the note in my name. We are wondering if we can refinance with me as a co-borrower. Then refinance again later, releasing her as a borrower. And I will separately reimburse her any equity built up. Simply put, she no longer wants a house payment and I do not have enough for the down payment.

Annita
Providing you don't want to pay out of pocket to refinance, you most likely will need equity in your home. I would verify with a reputable lender how much equity is needed for the type of loan you are qualified for. In addition, verify how long you must show proof of payment if refinancing at a later time. Here's one way to do this if there is no or not enough equity in the home:1. Have a legal service draft a quit claim deed where your mother quit claims and adds you as joint ownership. Record deed with the county recorders office.2. Start making the mortgage payment directly to the mortgage company. Pay on time. Pay with your own personal checking account the mortgage, taxes and insurance when they are due.3. Make sure you get a copy of the cashed check for your records. You will need a minimum of 1 year to show the lender that you have been making the payments. 4. Consult with a CPA on how you and/or your mother will report the interest and taxes paid on the property. 5. Depending on your lender criteria, you would be able to refi and take over the property after a certain period of time or when there is enough equity. 6. Added Memo: Prior to doing anything, consult with a CPA on the tax implications for your mother and for yourself. Talk with a local title officer (attorney in some cases) and lender. Do your homework, research and perfom due diligence up front

Claretta
If the house currently has any equity, why not have her do an 'under market' sale to you. If the home appraises for $100K and she sells to you for $70K + Love & Affection, then you would not need down payment. You would pay closing costs, but you have those for a refinance anyhow, and it would legally transfer ownership and liability.Would you qualify for a mortgage?It is a little unclear what you mean that your mom no longer wants to make payments. Can she not afford it? Can she rent for substantially less? You would not qualify for the $8K first time home buyer credit since the sale is by a relative.You could take over the payments for her in exchange for a promissory note stating that taking on the payments entitles you to 50% of the equity in the home after one year of payments, and then increasing by 5% per year. You would need a real estate attorney to draw this up to do it correctly.