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How can I transfer a loan to someone else? Assumption or Refinancing?

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dserrano
New Visitor

How can I transfer a loan to someone else? Assumption or Refinancing?

Back in 2009 a family member and I purchased a home together. Both he and I are on the title but only I am on the loan. The loan is in good standing and auto payments are made from a shared checking account that we share. Currently I would like to transfer the loan to him and possibly another co-signer. 

 

My question is: How can I go about doing this? Assumption? Refinancing? Something else?

 

I've already contacted my mortgage company (quicken) and they said they will contact me in a couple of days to give me the details of assuming the loan - or if it's even possible. In the mean time I want to know what info you guys can offer. My main concern is that at the end of this I would like to be off the loan completely so as to not have any liability.

 

Also if transfering the loan from my name, how would this affect my credit and taxes?

 

Appreciate any help you can give me.

 

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ShanetheMortgageMan
Super Contributor

Re: How can I transfer a loan to someone else? Assumption or Refinancing?

Refinance should work since he's on title, and assuming there is sufficient equity.

 

If it's an FHA mortgage then it may be assumable.  If it's conventional then it's very unlikely it's assumable.

 

The impact on credit would likely be negligible.  Very rare someones credit score would decrease considerably by paying off a mortgage.

 

Not sure how it'd impact your taxes, you'd need a tax professional to review.  You wouldn't be able to claim any interest or property tax deduction however.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 4
dserrano
New Visitor

Re: How can I transfer a loan to someone else? Assumption or Refinancing?

Thanks Shane for the reply and useful information.

 

If we refinance and there is plenty of equity, would we be able to take out money to invest in other property and still move the loan over to someone else?

Message 3 of 4
ShanetheMortgageMan
Super Contributor

Re: How can I transfer a loan to someone else? Assumption or Refinancing?

Yup, it'd be possible to take cash out to 85% of the value if it'd still be his primary residence.  If it'll be used as an investment property then 75% is max.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
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