Author Topic: Home loan, HELOC, best way to get money out of a house for BiL  (Read 900 times)

ahueston

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Quick summery, my BiL and his family rent a house across the street from his dad(my FiL), who no longer lives in that house as he moved into a house he got when his father died. My BiL homeowners want to sell the house now for 190,000, which sadly the BiL cant afford.  They want to stay in the area and the schools.  The price for the house they are renting might actually be a bit below market value, which would be 200,000+.  Last night we came up with a plan of the BiL buying the FiL house.  The house is in pretty bad shape and will need to have lots of work done to it.   My FiL needs some cash so he agreed if he got 50,000 he would transfer the house to my BiL, not that my BiL has savings for that or the cost of fixing up the house.

My question is what would be the best way to get the money to pay for the house.  They are thinking they will need 130,000, of which 50,000 would go to the FiL and the rest for fixing the house. Would a Mortgage or a HELOC be the best way or is there some other way.  They don't have anything saved for a down payment, and my goal is to not get involved money wise in the house. Yesterday an idea was I get the mortgage on the house as I could pay the down payment, but after thinking and having all the equity of buying a house so below market value, I figured there had to be a way to do it without my monetary involvement.

talltexan

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Re: Home loan, HELOC, best way to get money out of a house for BiL
« Reply #1 on: August 30, 2017, 12:09:46 PM »
I don't know how much everyone trusts each other here, but this sounds like it's turning into a mess!

What if your FIL sold his house, then used the money to buy BIL's house (perhaps he would qualify for a mortgage), with BIL's rent covering the payments?