A Relative To Live In - Buying A House For

: You can find these options through major lenders like SoFi or FNBO .

Buying a house for a relative to live in involves choosing a financial structure that balances your budget with your desire for control and potential tax benefits. Because these are "non-arm's length transactions," lenders and the IRS often provide closer scrutiny. 1. Choose a Financing Strategy buying a house for a relative to live in

: Typically requires the home to be a certain distance from your primary residence (often 50+ miles) and may have higher rates than a primary mortgage. : You can find these options through major

: You get the same favorable interest rates and low down payment requirements (as low as 5%) as a primary residence, even though you won’t live there. : You act as the bank, lending the

: You act as the bank, lending the money directly to your relative at a minimum interest rate set by the IRS, known as the Applicable Federal Rate (AFR). 2. Understand Ownership and Legal Structures

How you hold the title determines what happens if someone passes away or if you decide to sell: Helping a family member buy a home - Merrill Lynch