A friend is moving across the country and is wanting my wife and I to live in his home. How, is yet to be determined, but we aren't even sure what options would be best.
Some background: My wife and I are currently renting an apartment. We've been saving for a house down payment, because we'd like to avoid PMI or becoming upside down in the house quickly. We've been targeting houses in the $100,000 to $200,000 range, but weren't quite ready to buy. We currently pay $950/mo in rent.
Friend's house is worth right around $130,000, and he has $100,000 left on his mortgage. His mortgage payments are right about $950. He's moving permanently, so does not want to retain the house long-term. Our friend is being extremely generous and trusting, but we want to make sure whatever happens is good for him, too.
We've debated on renting from him for a time, possibly a rent-to-own situation, though he wouldn't want to include an up front payment for the purchase option or other things like that.
He's also suggested we adopt his mortgage as payment for the house. I'm guessing this would require a refinance and thus down payment on our end, but I'm not at all sure what the process of that looks like vs. just buying. Even though he isn't asking for it, we'd likely want to include some additional equity for him.
Any thoughts on a best course of action? Things to watch out for?
Submitted February 27, 2019 at 12:32PM by shadowatmidnight104 https://ift.tt/2Vn6k5J
