Creative financing to purchase parents home - Posted by Denicia

Posted by DaveD (WI) on April 04, 2006 at 09:20:55:

In order to think outside the box you need to challenge your own assumptions. Here are a few questions to start your thinking.

Why do thy need to sell for full market?
Are they planning to live off the equity difference between their old house and the new one?
If so, how would they invest this amount?
What purchase price for them would create a “low” mortgage?
Can they even qualify for a mortgage?
How long do you think they will utilize this new house before bad health forces another move?
Should they be buying at all? Maybe renting and/or assisted living would be better?
Who is the beneficiary of their estate?

Just a thought. I’m making a lot of assumptions here, but if they are planning to take their gain and invest it conservatively, why not have them carry back most of their equity? They know the borrower (you!). Just take over their payments, and set up a low rate of interest on the difference that gives them something, but gets you in the door for the equivelent combined payment of a 600K house.

Then put them in a nice retirement home, and bring them flowers often. They deserve it.

Creative financing to purchase parents home - Posted by Denicia

Posted by Denicia on April 02, 2006 at 22:05:39:

My parents own a home worth approx 800,00 they owe 470. My dad is ill with cancer. Mom health is failing quickly. They are in early 50’s and have no retirement social security etc… My husbamd and I would like to buy the house but can only afford roughly 600,000. My folks need sell for market value and purchase something that will produce a low mortgage. Do we have any options to keep this house or is it a lost cause? Their home is in a prime location in CA and with about 20,000 into the property the value would increase immensly. Investors? carry back?? Did I mention it would be our dream house? Any creative thinkers and advice welcome.