My parents currently own a 6 bedroom house hold in the city of Ventura, CA. Unfortunately, my father got laid off a few months ago and now they can't keep up with the mortgage. At the moment, they are relying on savings and a few renters to pay the $3400~ mortgage payments. They come to a realization that they don't need the big household and it is not worth holding anymore. At the current rate, they will have to foreclose/short sale/ etc. So naturally they are looking to sell the current residence and downsize into something smaller, possibly a manufactured home. Unfortunately, back in 08’, they already underwent a short sale causing their credit to sink. No lender will consider them for a loan on a new house.

I am the only one in my family who has good credit and a stable form of employment. My parents reached out to me to see if I was willing to help. The agent suggested that I could buy the new house under my name and rent it out to my parents. My father did get a new job a few weeks ago that would hopefully cover the mortgage payments if I get a good deal on a house. The RE agents said it would work if we find a home valued approximately around 250k. Essentially, I would buy the house, my parents would maintain, pay, and hold the house. They would also cover the down payment. The money made from selling their current residence is approximately 50k.

RE Agent is telling me to look at this in the long run as a future investment. One day I would be able to sell or rent out the property, but in the mean time I won’t have to worry about it.

I guess I wanted to see if this is a smart move.

Is the RE agent right on how I should look at this situation, a long term investment?

Would this ruin my credit or chance in any way for when I decide to purchase my own house?

Is an FHA loan possible? Or is that something I should save for myself?

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Need input for a family situation.

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