All Forum Posts by: Jonathan Cole

My parents currently owe $80k on their SFH, my fiance and I were wanting to purchase the home from them. The house is in need of repairs so we were going to apply for a Homestyle Renovation loan such as; Fannie Mae, 203k or Upsell. We ran into a roadblock when we told the lender that we have lived in the home for 3 yrs. We are not eligible for any FHA loans that offer 3.5% considering we are within arms length of the seller, it will take us too long to raise the 15% needed since we are not eligible for FHA.

Our ultimate goal is to put a little money into our parents pocket, get them out of their mortgage, as well as repair and update the home as quickly as possible and building equity into the home.

We are trying to view this as an investment purchase and we would like some feedback on creative ways to solve this problem.

We live in Ga so please advise state laws.

Thanks in advance for your help!
 

My parents have been currently residing in their home for 25+ years. They hit a rough patch about 6 years ago and can no longer afford their mortgage. The maintenance of the home has gone to the wayside, there are quite a few cosmetic issues. We are considering a Fannie Mae loan to purchase the home and turn the partially finished basement into a mother-in-law suite, as well as fix the other issues in the home. They owe $88k and is currently worth $148k (using Zillow estimate). Has anyone dealt with something like this? We're not sure where to start or what the best approach is. Our goal is to get my parents out from under the house and the debt it holds for them as well as create cash flow for ourselves via rent or fix and flip. Please let me know of any additional information you need for you to form an opinion.