What is the best option for buying your parents house, when you have bad credit and no downpayment?

My inlaws have two homes. It has been long known when they were near retirement, their daughter (my wife) would buy the oldest of the homes, the one all the kids grew up in.





We have little to no cash down and our credit scores are in the high 500's. The inlaws are willing to do almost anything to help us get into the home, even staging an elvated price to make it look like we dropped a big downpayment, though we can not prove it beyond word of mouth. Living there paying rent for a year may be another option, before we take owner ship of the house.





The house will be going on the very low side of the price range for this area at approx $200k. Average house price in this area is $350k or higher. We can afford the monthly depending on interest rate as we are already paying $1000/month rent now.





Any advice would be greatly apprecaited. Again little or no money down, poor credit, willful inlaws, and a family history in the house.What is the best option for buying your parents house, when you have bad credit and no downpayment?
They can sell at an elevated price if you want. The rest can be a gift of equity to you and your wife. It must be in letter form and in the sales contract. If your scores are in the High 500 then financing is no problem. try to get them to give you a 10% gift of equity and them to pay the closing cost and you should be good to go!What is the best option for buying your parents house, when you have bad credit and no downpayment?
they can give you a personal finance. they would hold the title, but you would be able to pay it off just like a mortgage...Have it in writing
Buy that house! This loan is pretty easy to do. The golfer had it right. Call your local mortgage broker and specifically tell them you'd like to do a ';Gift of Equity Purchase';.





They'll know exactly how to structure this loan. Trust me, it's a piece of cake. Paying that much in rent is just silly when you could be earning equity in your own home.





If you want to learn about mortgage brokers and how the decision process works, bookmark my blog: http://explaintome.blogspot.com
Have you spoken to them about the possibility of a seller carryback? Which is a form of financing in which the seller of a property accepts a down payment and agrees to accept payments until the property is paid for. You will need some assistance, possibly through a title company to have the papers drawn up.





Good luck with your new home.
My suggestion is with no downpayment and bad credit score means you are in no position to purchase a home at this time. I suggest you keep renting for another yr(if possible) and start putting money aside now for a down payment. If you try to make a large purchase like this when money is tight, it make it 10x as hard to get back out debt. Work things out with the in-laws. Good luck!
IT IS EASY IT IS CALLED GIFT OF EQUITY I DO THEM. PLEASE EMAIL TO SEE IF I COVER YOUR STATE (I DO MOST STATE) JOHNG@OLDMERCHANTS.COM