Buying | A House For A Relative To Live In

Depending on your goals and the relative's financial situation, you can structure the purchase in several ways:

: This is a specialized conventional loan option that allows you to buy a home for an elderly parent or a disabled adult child who cannot qualify for a mortgage on their own. 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. Depending on your goals and the relative's financial

: 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 buying a house for a relative to live in

: Usually requires a higher down payment (often 15–25%) and carries higher interest rates.