Updated almost 7 years ago on .
Helping Brother Buy First Home
Greetings!
Last year, my mother in law bought a 2/1 home for $40,000 and put in $40,000 to fix it up nice - all cash. She started renting it out to her son and his roommate with the intention of selling it a few years later to pay off debts and retire. The home may appraise for $180,000 to $230,000.
Previously working for cash, her son has now been working at a W2 job for just over a year wanting to buy the house with an FHA. Some issues arose so that his mom may need to sell the house this fall before he hits 2 years as an employee.
I am almost done fixing up my home that I have and FHA loan on and plan on getting a HELOC by the end of Summer to use for investing. With the ability to soon help, I was thinking of ways to help so that I'm not tied in for too much or too long. As long as I can at least break even until he can pay me back, I was hoping for some suggestions on how to best help him.
My thoughts so far:
- Can he and I get an FHA together with without me having to refinance out of my current FHA?
- I thought he and I could buy it with 20% conventional and have have him refinance it once he qualifies to pay me back get take my name off, or something similar with a 10-10-80? I believe I would be in it for the most and the longest amount of time this way.
Your thoughts? Thanks BP!!