Taxes are low in Philly.

With seller contribution to your closing costs and a downpayment assistance program, you can purchase a home to live in with low out of pocket costs.

I am in WA state, nothing low cost here.

Screaming high / fast interest rates employed by the Fed, $10 Trillion in federal spending, extremely low home sales, corporate earnings revised lower and lower, inverted yield curve for Treasury Bonds, etc…, all indicated a recession on the horizon.

The original $493k is very low, unless not going for max LTV.

What about maintenance costs? 

7% rate is WAY TOO LOW for the risk your Mom takes.

*Credit is low to mid 600s due to high credit utilization as a result of covid.

In either scenario, you'd get low payment/zero interest payments that could be restructured whenever you like.All just food for thought.

Seems like you haven't included any money for vacancy, repairs, maintenance.