Just for clarification, would I pay federal income tax on the sale price of the home (eg - as if it were income)? 

I need to provide some clarification here if you don't mind.When we BRRRR a property we need financing in 2 steps - the BUY step and the REFINANCE step.  

Or if they were trying to avoid taxes that still helps as the can recognize the sale over the term instead of all at once.And just fyi there can be a situation in probates or trusts where there isn't enough liquidity, combined with multiple properties/assets, especially if they vary widely in value, where a mortgage would be attained by one or more of the heirs in order to equalize the distributions when some heirs want cash and others want the "asset"(house/business/art work etc).Tyler Mullen, CFE

Thanks for clarification.

I understand the obstacles that exist going that route, however I really haven't been able to find clarification anywhere.  

I would contact a real estate attorney for clarification but I believe there is an affidavit that could be produced with supporting medical evidence to exclude him from executing the deed.

I would truly appreciate some clarification and word of wisdom at the moment.

But it wasn't until I attained the savings that I have today that I became comfortable with putting 20% down on anything.

I believe that is a reasonable and attainable goal for my needs.

@Mitch I just wanted to offer some clarification.