If you nephew wants to buy the house and the five kids all agree, fine. Let him buy it now--except he's not able to. So let him lease (lease-option, as Dan suggests) now and if he still wants to buy it in two years, and is able to, great. You sell to him.
You brother appears not to have a full understanding of home financing. Whether your nephew owns the home for 1 year or 10 years won't have anything to do with him getting financing. There are plenty of people out there right now who bought homes 3-5 years ago and want to refinance but can't. Sometimes because there's not enough equity, sometimes because their credit isn't sufficient.
Your siblings want to somehow provide a home for your nephew. That's good. But you can accomplish exactly the same thing by renting the home to him, or doing a lease-option. And 2 years from now, he'll be just as able to buy as he would be able to finance it. Or just as unable.
And turn the clock ahead 2 years. Suppose he isn't able to finance the home. What then? If he's leasing, that's OK. But if he already is the owner, you either leave him in there, or you foreclose. Neither option is particularly attractive.
If you all don't care about any revenue from the house, if you're just willing to give it away, then that's a different matter. Sell the house to him for $10. Then you all just walk away. Eliminate the expectation that you may see some revenue when he gets a loan for it in 2 years.
I'd suggest the siblings all sit down with a lawyer or accountant to lay out the situation and get feedback from a professional. They don't seem to be taking your views on the matter seriously enough. Perhaps they'll listen to a lawyer or accountant.
Hope that helps.
The worst thing that could happen if you sign a quit claim deed is that he does not even say thank you for the free house. Once you quit claim the property over he is now the legal owner.
On a land contract sale after a few years he could just do a refinance instead of a purchase money mortgage under the current rules to buy out you and you your siblings.
This is not legal advice please check with an attorney in your state.
heres the wikipedia defintion of "quit claim deed"
A quitclaim deed is a term used to describe a document by which a person (the "grantor") disclaims any interest the grantor may have in a piece of real property and passes that claim to another person (the grantee). A quitclaim deed neither warrants nor professes that the grantor's claim is valid. By contrast, the deeds normally used for real estate sales (called grant deeds or warranty deeds, depending on the jurisdiction) contain guarantees from the grantor to the grantee that the title is clear. The exact nature of the warranties varies from jurisdiction to jurisdiction. Quitclaim deeds are sometimes used for transfers between family members, gifts, placing personal property into a business entity, to eliminate clouds on title, or in other special or unusual circumstances.
The most common use for a quitclaim deed is, in a divorce situation, where one party is granting the other full rights to, and eliminating any interest in, a property in which both parties held an interest. If a husband and wife own a home and divorce, and the wife acquires the home in the decree, the husband would enact a quitclaim deed to eliminate interest in the property. Quitclaim deeds are also typically provided in cases of tax deed sales where property is auctioned off to pay outstanding tax debt. The auctioning body is usually a local government, which claims no interest in the property whatsoever, but is selling it only to recover the back taxes.
My name is Melaine Loy, Broker of Real Estate Salutions of Great Falls and I see red flags here. First and foremost, I would like to tell you and the rest of your family to contact an attorney for some legal advice. Just because you quit claimed the property to him wouldn't mean he has shown any ability to pay anything and puts him in no better place than he is now. You can quit claim a property to anyone but the mortgage is what matters. If there isn't a loan which may be the case, the same stands true. The only person getting credit for (good credit), as far as a credit score goes, would be the one who has the mortgage in thier name. He would be able to show his history of paying rent for 2 years to a financial institution looking to finance him, but this wouldn't require a quit claim deed and any renter could show this. I would suggest selling the house now to stop the possibility of future arguements that can tear your family apart. One last thought, doing business with family and friends is usually not a good idea. Feel free to contact me and best of luck.
To be fair to all involved you could give him a rent or lease to own. Then in a few years he could apply the rent to the purchase price.
The worst case scenario. He owns the place. Does not pay taxes on it. Loses it for the tax bill and everyone loses.