How dose a Father sell his Home to His Daughter for the Amount owed to the Finance Company?

The father has a Home worth $950,000.00 and wants to sell it to his daughter for the amount of $770,000.00 which is owed on the house. Is there a penalty involved or should he use A Gift of Equity. What is the rate difference in terms of financing. Her Fico is 779 she has sufficient income. Please help me?

Public Comments

1. There shouldn't be any magic, he just writes up a sales contract for $770,000 or the payoff amount to the mortgage company. As long as there is not a pre-payment penalty on his current mortgage. You can sell your house for whatever you want to as long as the mortgage lien on the property gets paid off.
2. This is called a non-arms length transaction and some lenders don't allow it. Providing the current mortgage payments are up to date, it can be done without any type of penalty and he can gift her the equity and pay her closing costs. Additionally, some lenders won't allow more than 80% LTV on this type of transaction. I have done these before and it's not difficult.
3. Its called an interfamily transfer. Great thing is she will keep the same taxes on the house as you did possibly without the property getting reassessed. Make sure you talk to a Mortgage Person who can tell you what a interfamily transfer is and if they have done them before. You will be suprised how many dont know what the @#$#@# you are talking about. Good luck and congrat's to you and your family.