Passing Home To Children

[Jeffrey J.]

Greetings. So my parents whom are fast approaching retirement age want to pass our family home onto us, their three children.

I currently own one investment property and my sister is now in the process of purchasing her first home through FHA. However our youngest sister's finances and credit score may not be quite up to par.

Our parents home has well over $200,000 in equity, but want to sell us the home for what they currently owe on it. As a result, the monthly mortgage payment will be incredibly less due to the fact it will be amortized over 30 years.

However, how would you proceed with this deal? I was thinking wait until sister one purchases her first home through FHA then the two oldest siblings purchase our parent's home by putting 20% down on a conventional mortgage and in the future have sibling number 3 assume the mortgage with us?

What possible issues do you see arising for all parties involved? How would you structure the transaction differently?