Legal Question in Real Estate Law in Pennsylvania

Easiest Way IN

A relative has offered to sign his house over to me. Or sell it to me at a nominal fee. Soon after, I would like to take out a home equity loan to make repairs and upgrades on the property.

Will either of these transactions reduce my chances of getting a home equity loan?

Also, how will a sign over transfer affect me tax wise?

Thanks,

Vikki in Philly

Thanks


Asked on 7/12/00, 10:27 pm

2 Answers from Attorneys
Murray Eckell Eckell,Sparks,Levy, Auerbach,Monte,Rainer,&Sloane

Re: Easiest Way IN

Having the house in your name will enhance rather than hinder you in obtaining a loan. Taxwise, after you own the home you will be able to deduct the interest on the mortage and deduct the real estate taxes. When you sell the home, you may have capital gain tax to pay depending on whether you put the proceeds in another home, your age, and other factors.

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Answered on 9/08/00, 5:15 pm
Marc S. Bragg Bialecki & Bragg

Re: Easiest Way IN

Nice relative.

Should be no problem with the refinance as long

as equity is sufficient.

Tax wise, you should speak with an accountant.

Could be a gift, or other, depending on your agreement.

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Answered on 9/08/00, 10:43 pm


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