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
2 Answers from Attorneys
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.
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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