Buying a Home from Parents

Asked by oddnyte, Mon Jul 21, 2014

Hi Everyone,
I was hoping someone can point me in the right direction in this situation. Here it goes, My parents have offered to purchase a home I am interested in in cash (to secure the home quicker & cheaper) and then I would pay them back. My question is what is the beat way to go about financing this after their transaction is complete. At this point I am thinking 30yr fixed mortgage. Can anyone throw some other options my way? I've heard people talk of incorporating the property? Also, would anyone know of the affect this buy/sell transaction will have on our taxes for the year?(maybe a way to handle that better as well?) Any info is greatly appreciated! Thanks!

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3
Tim Moore, Agent, Kitty Hawk, NC
Mon Jul 21, 2014
Allowing them to buy with cash is not going to guarantee a lower price. If I was selling it would not make me sell for less, I could wait 2-3 weeks longer for a loan to go through if it means I get thousands more in the sales price. Cash is nice, but it does not make a seller fall to his knees with gratitude as some believe.

If you plan to get a loan to pay them back why not find out now if you can get a loan. Speak to a lender to find out. Your folks could hold financing and you pay them each month. They might be upset if they buy it and then you can't get a loan.
1 vote
Terry McCarl…, Agent, Cape Coral, FL
Mon Jul 21, 2014
Discuss this with your Realtor and also a lender.
0 votes
Josh Barnett, Agent, Carney, OK
Mon Jul 21, 2014
Discuss with your Realtor Member, they will be able to help you with this.
0 votes
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