Buying A Home
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Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Buying a home from family?
Has anyone ever purchased a home from a family member? DH and I are planning on buying FIL's house, and selling our house to our neighbors. FIL will be financing our home loan for $300K at 0%. Our neighbors will be getting a mortgage to buy our home.
I've been reading a lot of information online, but thought that I would see if anyone has been through this themselves. If so, do you have any suggestions/tips/advice/etc.? Thank you for your help!
DS is going to be a big brother!
Re: Buying a home from family?
We bought DH's grandmother's house 5 years ago with a bank loan. My biggest suggestion is to be sure to have a lawyer involved to be sure everything is legit. It was relatively inexpensive and we were happy to be sure the laws were all followed and the house is really ours, especially now that we are selling. And be sure to get it appraised as you want to be sure you will get the money back when you sell.
It worked out well for us. I hope you have the same luck.
met DH 1995 ~ married DH 2006 ~ completed our family 2008
Life is good!
Ditto - get a lawyer involved. You might need two lawyers to represent you and your FIL separately. I'm not sure, but the lawyer will be able to tell you.
You need to make sure all the real estate paperwork is in order, and that you're following tax rules. A 0% loan might be perceived as a gift.
This has crossed my mind, too. I've been doing some research on whether it would be considered a gift or not and so far I can't find a clear answer in regards to our situation. So, I agree that we need to find a lawyer to help us through this process and make sure that we've covered everything.
Thanks for everyone's advice!
met DH 1995 ~ married DH 2006 ~ completed our family 2008
Life is good!
Good advice from pp's, I just wanted to add to make sure the purchase price is a fair market value. Not sure of your FIL's situation, but if he needs medical care or anything in the next 5-7 years (I forget the lookback period) and Medicare gets involved they will go back through the transactions and it could cause issues.
Hopefully this isn't the case, but my BFF is going through something like this with her parents. Good luck!
This concerns me as well because FIL built this house. I'm sure that we'll get comments, especially from one of my BILs, but once the house is ours we are free to change whatever we like. So, they'll just need to get over it.