Arms length purshase question

Real Estate Investing Real Estate Financing
1

I’m trying to buy my parents home (paid off for years) with traditional financing. They are getting up in age and want the money to travel etc. So, owner financing is not an option.
In going to a mortgage broker he said the only way to get around the “arms length law” is to have my parents refinance the house and have my name on the loan. Then 6 months later (fannie mae rules) I can refi again and take my parents off the house and it will be mine.

Is there any truth to this being the only way to get this house in my name and get “around” the rule and paying closing cost twice and have it traditionally financed?

thanks,
Mark(TX)

2

You can probably buy it subject to and get the deed to the property. Wait the six months for seasoning and then refi it if that is your game plan.

Jim