Remarrying, trying to pass on my mortgage to son. Help?

You cannot just "transfer the loan to him".. all conforming loans have a "due on sale" clause, which basically means if the ownership changes, the loan must be paid in full. Two things you could do. First, you could just add him to the title.. most lenders will allow you to add a person to the title of a home so long as one or more of the original borrowers remains on title. If the lender allows it, then it will not trigger a due on sale.. The second option would be to just rent the home to your son, at a reduced rate (1/3 of the mortgage payment).. this way you still own the home and control the interest in it.. both of these scenarios have their positive and negative circumstances, so it's best you talk to a real estate attorney before you make any decision. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It is best you refinance this home into both of your names. This way the home and your interest is still protected. Since you will be making 3/4s of the payment it just makes sense to keep a deeded interest in the property. This way you will also be helping your son build his credit, and will allow him the time needed to graduate and get a job. Once your son can get approved for a loan all by himself you can let him refinance into his own name.

Keep the property in your name only for the present. You can transfer ownership, but not the loan to him at a later date. Once he is out of school, he may make enough income to qualify for a loan on his own.

The best advice is to just add his name on the title for now. As long as you are not trying to qualify for a new loan and are just moving in with your fiance who already has a mortgage there should not be any issues. If the loan is not FHA it is not assumable and you cant just transfer over to your son. If it is FHA your son still needs to be able to qualify for an FHA loan and the mortgage to assume it. Putting him on title is easy, just speak with a local title and do a quit claim deed to add your sons name to the title. There will be a fee for doing so.

While you are free to transfer a home to anyone you choose, you can not just give or transfer a mortgage to someone. All mortgages have a clause that says if you no longer own the home, you must pay off the loan. There are a few options for you to make this work. Is the current loan assumable? FHA loans for example are assumable WITH QUALIFYING. You can "sell" the home to him, and if there is equity, do a gift of equity, where relatively no money exchanges hands. Contact a local experienced Kansas mortgage broker for more information.

Lots of good advice from others. Unless you have a FHA, VA or USDA loan your son cannot assume your mortgage - and he would have to qualify based on his income and other qualifications. I agree with the suggestion to put him on title, have him pay you his "share" by CHECK once a month so that it can be documented. Eventually he'll hopefully have the income to refinance in his own name, otherwise he'll keep paying you his share and you can make sure the mortgage payment is made on time. Good luck

You cannot simply transfer the mortgage to him. You have a couple of options - you can continue to own the home and rent it to him for the price her agreed to pay towards the mortgage. You can also add him to the title. Another option would be refinancing the property under both of your names (assuming he is able to qualify with all of his student loan debt).