Can I use my SDIRA to invest in a REVERSE MORTGAGE- Complicated!

[Dawna Willis]

Because time is of the essence, I want to make sure I find the best way to do this transaction, and if I am even ABLE to do this transaction. I am aware a sibling is not a disqualified person and my brother wants to pay off my father's reverse mortgage. He is currently staying in the home and has to pay $56K to settle the loan. He missed a deadline for paperwork to extend the timeline for him to get conventional financing (would take over 30 days and would lose the house in foreclosure sale). I don't think that I can use my SDIRA funds combined with some of my funds to pay the reverse mortgage because my dad owned the house - but technically they now have a lien on it and he passed, so I am unsure if that still counts as a disqualified transaction on my end -If I am paying the mortgage company. But because he left the home to both of us, my intention was to just quit claim my portion to my brother once he got financing. The only other alternative I can come up with is to loan my brother's company the funds (half from my SDIRA 60% and half personal cash 40%) and do a contract where the monthly repayment goes back to the respective accounts 60/40 and give him 6 months to a year to get refinanced. And refinance at maybe $66K to account for having to use my SDIRA funds (could have been invested in something else and to account for some of the equity I am giving up by not just selling the property and splitting the equity). The home appraises for about $95K and we have gotten offers on it, but he would rather stay in the home for $56K than try to find somewhere else to stay in this market. Hard to find anything in our area under $100K. So can I pay the reverse mortgage balance or loan to my brother's LLC with my SDIRA? Thanks for any help