Brother helps sister become owner of his Norwalk condo
Mortgage banker: Jay Tolisano
Property type: Condo in Norwalk
Home value: $250,000 Loan amount: $230,000
Loan terms: 30-year fixed, 5.375 percent
Background: Jay Tolisano received a call to help the potential buyer purchase her brother’s condo that she was currently living in and renting. The brother had moved out-of-state years ago and the condo became a rental unit.
Years later, his sister who had been living out of state moved back to Connecticut and started renting the condo from her brother. Her brother was happy to have family living in the home, it helped his sister get settled here in Connecticut and the rent almost covered his monthly carrying costs.
A year after the client had been living in the home, Tolisano received a call from the perspective buyer that she really loved the unit and was planning on staying in Connecticut. She wanted to buy it from her brother, who was open to the idea, but there was a challenge. The buyer was getting her career off the ground in Connecticut and couldn’t quite qualify for the loan on her own.
Tolisan decided to talk to her brother and found that his goals were simple: To help his sister build her credit, to give her the ability to be a homeowner and to save some money on their monthly mortgage.
Tolisano came up with the idea that the sister and brother take out the mortgage together as a rate and term refinance versus a purchase money mortgage. This allowed the sister to become part owner of the property and to have the debt in her name, which would help her build credit and have homeownership, amongst other things.
Using this strategy helped the customers achieve their goals with a favorable interest rate while consolidating a first and second mortgage. As a refinance transaction, it also helped the customers save transaction fees such as conveyance tax fees that are normally due to the state and the town at the time of purchase closing
There is always a story, and if you dig deep, ask the questions and listen there is likely an answer and solution.