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Best way to buy a house for another person? [USA] (lemmy.world)

submitted 4 months ago by DinoAstronaut@lemmy.world to c/personalfinance@lemmy.ml

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I'm in an extremely fortunate position where my Mom, upon learning about current mortgage rates and why I haven't bought a house yet, wants to essentially be my bank to buy a house. As in, she wants to fund the house, put it in my name, and I pay her a reasonable down payment and pay a "mortgage" to her at 2-3%. So what would be the best way to do this?She buys the house then transfers the deed? Should she just transfer the cash and I purchase it?

Side note: I know people are usually against doing big purchases with family, but I don't really see a downside since the house will be in my name, and with that 2-3% rate, the payments will be similar to my rent even considering maintenance and property tax.

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[–] DinoAstronaut@lemmy.world 5 points 4 months ago

That's good advice, thanks! I'm in Texas specifically, but you're right contacting a professional is the right way to go. I guess I'm just thinking about what the process in a general sense might look like.

As for wills: Her will is set up to leave property to me, and finances to my brother. My will leaves everything to my wife, then to my mom, then brother. But if the house deed is in my name, does this matter?

As for home inspection and related: I'm seeing this as an opportunity to get a more detailed inspection than usual. I've found someone who is a bit expensive but is very thorough, using things like flir cameras to inspect water pipes and such. And I've been disregarding any realtors who say inspections aren't necessary.