The house cost $285,000. Floyd and Pamela put down $15,000 from their savings. I contributed $45,000 for the rest of the down payment.
The mortgage was $225,000. Floyd and Pamela’s credit was too poor to qualify alone.
So we structured it differently.
Gerald explained it carefully. “Given the credit situation, the cleanest option is to put the house in Otis’s name. He qualifies for the mortgage easily. Floyd and Pamela can make the monthly payments, and we’ll draw up an agreement that transfers ownership to them once the mortgage is paid off.”
It made sense. My credit was solid. I had a pension. The bank approved me immediately.
Floyd and Pamela would pay the monthly mortgage. I’d cover property taxes and major repairs. Once the house was paid off, they’d own it outright.
“Everybody good with this?” Gerald asked.
