We Want to Purchase Grandpa's House, Can't Afford Market Rate

[Laura Askew]

Our Grandfather recently passed (the best guy ever btw) and his house has been in our family for generations. My wife and I want to purchase it from our Aunt and Mother (who are adamant about selling it) but can only afford 450K. The market value of the house is 750k although it will probably appraise for less, the neighborhood is a very sought after location. We want to offer them 450k and if they're hard up on market value, offering to refinance in the future and pay them the difference (through a contract lawyer of course). Is this something that happens, is it a good idea, are there other ways to pay the difference, or should we just let it go? Any advice would be great. 

[Kevin S.]

@Mary M. I think what the poster meant by $450 is that they could only get approved for a loan of $450k.

@Laura Askew you could consider discussing an owner-financed purchase with your mom and aunt (just do a search for owner finance and you'll find a lot of information on BP). However, I have to agree with @Ned Carey, if you can only truly afford $450k, then as much as you want this deal it may not be for you. You don't want to over-leverage yourself and find yourself unable to make payments to the bank or to your family.

Good luck!