I suggest you contact Marcus McCue at Guardian Mortgage 972-248-4663. I have many international clients and after going round and round and round with many, he's the one that allows handles everything quickly and efficiently and never with a problem in my epxerience. There must be tricks to these kinds of loans sometimes and what will work and what won't so he must know most of the tricks. One of the only lenders too that I've seen be ready two weeks early.
As far as the taxes....I don't think there is any savings for them on the US side, but perhaps in their home country as far as the sale and purchase is concerned. They'd need to check with their tax advisor there. We do have a similar provision in the US that certain profits from the sale of a home are expempt if reinvested in a primary residence within 2 years. We also have 1031 exchange savings if exchanging investment real estate. But that would apply perhaps to future purchases not this one I suspect.
The only other tax savings I can see is if they will now use this home as their primary residence and not as an invesment they can perhaps claim an over 65 years of age exemption on the property taxes if they are over 65? There are rules on residency so we'd just need to check your expectations. The other way to perhaps save taxes is gift/estate taxes depending on the size of their estate. If less than $1million it may not matter, if over $1million it might matter if they become residents here. The idea with that is they can gift you each year up to a certain limit like $10,000. So for example you buy a $500,000 home, they provide you $100,000 as downpayment. They can perhaps gift you $10,000 for the next 10 years to perhaps avoid some estate taxes. Now I am not a tax attorney, attorney or tax specialist and neither are most mortgage lenders, so depending on the size of the gift and the size of their estate and where they plan to live are probably the next questions to consider. There can be some negative consequences to this type of arrangement too, if they are not giving you the money but want to consider it as an investment. There are larger withholding requirements when you sell a home if you are a non-resident, and if there is little appreciation you could be forced to deposit money with a title company in order to sell the house, so some of these ideas might also depend on how long you intend to stay in the home, the price of the home, the amount of the investment by your parents and by you and your thoughts on appreciation. If you don't have a realtor yet, call me at 214-675-6992. I have many international clients and have often worked through a number of these situations.