It will be difficult to get a 100% loan on a non-conforming home. If the issue is lack of building permits, work with a contractor to get the area(s) permitted and closed. It may cost a couple thousand dollars, but it is well worth it. Check with a lender to find out what programs are available for the area (ie, VA, USDA, Hula Mae, etc.) If our parents current interest rates are higher than today's rate (about 4.75%) then you may be able to get a much lower payment.
Another possibility is to talk with your parents to add you to the title of the house and take tenancy as Joint Tenancy. That way, when they pass away, it will automatically transfer to you (pending any trusts). Then, you take over the mortgage payments. Create a contract with your siblings to buy them out for the $200,000. Find out if you can get a cash out refi on the house (if there is enough equity), or maybe just borrow $100,000 for now, with the balance due in 5-10 years. Historically, most Hawaii properties appreciate 30-80% (depending on location) over the course of 10 years.
Ownership, Title and Transfer would be taken care of in Escrow.
1. To cover both yourself, your parents and your siblings, see an Attorney and a CPA
2. Non-conforming usually pertains to the home not conforming to the current standards or rules, perhaps a bathroom or bedroom was added. Find out where the Non-Conforming issue is and try to remedy it by contacting the City and County of Honolulu, DPP.
3. Talk to the lender, Loans these days are normally not transferrable so you would have to qualify for a 70% LTV loan and also show the ability to make the other payments to your siblings. Also, to get the loan the lender most likely would want you to remedy the "Non-Conforming" issue.
4. You most likely would be able to go on title with your parents, but your parents most likely would get the tax deduction, here again my recommendation is, you should consult a Real Estate Attorney and CPA.
Edgar Miner, RA
Gloria Chi Realty, Inc.
What do you mean that the house is non-conforming? Is there something messed up with the house? Or do you just mean that since they owe more than $417,000 you cannot take out a conventional loan?
Actually, Honolulu is what's referred to as a high-cost area, So if the home is located there then you may be able to get a "jumbo conforming" loan. The limit there is $721,050.
I'd probably need a few more details to provide you with some options, but I'm more than happy to review things with you if you want to give me a call or email me
Loan Officer -NMLS #977416
WCS Lending, LLC
Toll Free: 866.936.5363 ext. 278