Mother is Selling Her House and Wants To Move Into Mine

[Sadhana P.]

Good Afternoon, Bigger Pockets Family:

I would like to share this with you all:

My mom, for the last twelve years and some change has been paying for home through loans which she tells me are a combination of conventional and a balloon mortgage. She tells me that she did not have enough money to put down when she first purchased the home in 2008 but she was somehow told/approved by the bank to do the balloon&conventional loan combo. Fast forward to 2022, the balloon mortgage is due and my mom will not have the funds to cover the lumpsum. This concludes scenario A.

A few years ago, I purchased a townhome of my own. Following my mom’s footsteps, I, too, did not have a superfluous amount of funds saved up for the down payment, and am unfortunately required to pay mortgage insurance. Nonetheless it was enough to secure the home and get approved. I perhaps could have gotten a better rate on my mortgage and of course not having mortgage insurance to pay would be a bonus, but otherwise I have no complaints about my house. I am very blessed to have gotten it. It is in an amazing area; three miles from my mother's and the growth has been steady. This concludes scenario B.

We have spoken about both of our situations, and my mother is looking into selling her home and taking whatever profits she can make out of this sale and making a lumpsum payment towards MY townhome’s mortgage (which has about 59k remaining.)

1.) Is this the appropriate course of action for us to take? Do we even have this possibility to consider?

2.) If we DO have this possibility to consider, would it be wrong for me to want to consider us refinancing my mortgage into a scenario that temporarily displaces both me and my mother but makes the townhome a rental property instead with numbers that work?

3.) Or, if we DO have this possibility to consider, would it be wrong for me to want to consider us to put part of the profits into the townhome’s mortgage as my mother wishes and part of it as down payment into an actual investment property?

4.) Or do we not even have this possibility to consider at all?

Thank You all for your time and I look forward to hear your input.