Creative Ways To Buy Parents House

Figuring out how to buy your parents’ house can be a tiresome task, but luckily we have compiled a few methods you can use to do so. Checkout the article below as we explore some of the options you might have.

Table of Contents

Creative Ways To Buy Parents House

1. Get A Mortgage

This is actually one of the well know methods used when someone intends on purchasing any house and you can also use it if you want to buy your parents’ house. Getting a mortgage is not any easy process, so make sure you follow the steps below.

  • Go to a bank or lender and get pre-approved for a mortgage. The bank or lender will check your credit score, assets and debits in order to determine if you are eligible for the mortgage. If you are eligible they will tell you how much money they can offer you for a loan.
  • Do a comparative market analysis and decide with your parents how much they would accept for the house.
  • Hire an attorney or real estate agent to help you draft the contract between you and your parents. Sign the contract and the deal will be sealed.
  • Have a home inspection and 3rd party appraisal done.
  • Finally, get the actual mortgage and finalize the sell.

2. Become Their Landlord

Another creative way to buy your parents’ house is to make them your tenants. This option only works when your parents are not financially stable to keep their existing home. In this case you will have to buy the house from your parents and rent it back to them. However, make sure you seek legal advice before doing so, especially if you intend to make them rent the house below market rental prices. This is because some banks or lenders do not accept such arrangements.

3. Gift Of Equity

Another creative way of buying your parents’ house is to use the gift of equity principle. Gift of equity is when your parents give you all or a percentage of the equity that they have in their home, which you can then use as a down payment for your mortgage instead of cash. When using the gift of equity to purchase a house, make sure you seek advice from a tax advisor as this route can have tax or financial consequences.

4. Life Estate

You can ask your parents to register the house as a life estate. This means that there will be 2 legal joint owners of the house which are you and your parents. Your parents will have ownership of the house up until the die and then you can later take over. The advantage of registering your parents’ house as a life estate is that once they die the house will not go through probate but will be immediately transferred to the second homeowner which is you. When planning on registering your parents’ house as a life estate you should always consult a financial advisor since the house will still be liable to property tax and estate taxes based on its value.

5. Subject To Principle

If your parents are about to lose their house, a creative way to buy back their house is to use the subject to principle. This principle indicates that the seller is not subjected to pay off the existing mortgage when they receive a check from the sale of their house but rather the buyer takes over the existing mortgage. This means that the seller, whom are your parents are not required to pay off their existing mortgage but instead you, the buyer will have to take over their mortgage. This principle is ideal if your parents are in financial problems and you see it fit to help them out.

6. Rent To Own

Renting to own is a creative way to buy your parents’ house especially if you do not have enough money to buy it or if you are currently unable to get a mortgage. When renting to own you do not have to worry about paying taxes and insurances on the property since your parents will still be entitled to those responsibilities. When you are ready to buy the house you can then seek legal advice on how you can do so.

7. Crowd Funding

Another creative way to buy your parents’ house is to do crowd funding. This means you will have to ask a lot of people for money in order to buy the house. However, most people who support crowd funding initiatives usually prefer to donate to people who are needy or in financial problems. So if your parents are facing some problems and are about to lose their home, you can always do crowd funding. All you have to do is to setup a website and upload a video or write a short story about why you need the money. Place an option for people to donate money directly to you.

8. Seller Financing

If you are in desperate need of your parents’ house you can always ask them to help you out by doing the seller financing. This is when your parents agree to finance the purchase of the house, meaning they will buy the house on your behalf and in return you can pay them back by doing monthly instalments. When you use the seller financing principal to buy your parents’ house, you will be expected to pay property taxes and insurances.

Can I Get A Loan To Buy My Parents House?

Yes, you can definitely get a loan to buy your parents’ house. However, you need to meet a few conditions in order to qualify. For starters you should have a good credit score and you should have valuable assets and a stable source of income.

Can I Give My House To My Son To Avoid Inheritance Tax?

Yes, you can give your house to your son in order to avoid inheritance tax when you die. In order to do this, simply register your house as life estate so that once you die, your son will automatically gain ownership of the house.


There are a number of creative ways you can use to buy your parents’ house, but always make sure you have their permission first before taking any action.