Simple Ways to Buy Your Parents House (2025 Guide)

Learn how easy it is to buy your parents house for more memories.

A house is more than just walls, rooms, and things that take up space.

A house is a home where families stay there, raise their children, and make memories.

Being able to find creative ways to buy your parent’s house is a great idea if you want to keep this special place in your family for generations to come.

While it would be great if your parents could just gift you their house, that isn’t always an option.

But what are some of the reasons that you would want to buy your parent’s house in the first place?

Perhaps both parents are dealing with health issues and are unable to work and pay their mortgage.

Perhaps they are experiencing some other type of financial hardship that has prevented them from keeping up on their house payments.

Sometimes just being able to purchase your parent’s home might have a more favorable outcome for both parties.

There are so many different scenarios for being able to purchase your parent’s home that you may have never even thought of.

Let’s cover some of the more common scenarios in this post and provide creative solutions to buy your parent’s house.

What are the benefits of purchasing your parent’s home?

What are some of the potential risks and pitfalls that may lead to more financial stress and family grudges that no one ever even thought of?

So let’s dive into this potentially complicated situation.

Should You Buy Your Parent’s House?

Before we get into the creative ways to buy a house from your parents, let’s first take a look at why you would want to purchase your parent’s home.

Before you sign anything, have your attorney take a look at everything to ensure that you are getting the proper legal advice and everyone is protected both legally and financially.

There needs to be open and honest communication with all parties regarding the transaction with a discussion of the various possibilities that could occur before a commitment is made.

While there are many reasons why someone would want to buy their parent’s home, here are a few of the more common situations:

• Buying your parent’s home can help to ease the financial burden on them and gives you the ability to help them out in a financial pinch.
• You might also benefit financially by purchasing their house at below market value, having to put down a smaller down payment, or having them assume the mortgage if you are unable to.
• A big benefit is that it allows a family home to stay in the family rather than be sold to a stranger.
• Real estate investments are generally always a good idea.
• It can help to save money on realtors, brokers, and other commissions and fees that have to be paid when selling or buying a house from a stranger.

While these sound like amazing benefits, you also must consider the flip side.

We’ve all heard the horror stories of when a child or grandchild buys a house from a family member only to end up in court over something they never would have expected.

Maybe grandma didn’t want specific changes made to the house and now you are out of the will and she is trying to get her house back.

So what are some of the potential downfalls and risks involved in buying your parent’s house?

• Well, an obvious one is ill feelings from other family members. People can get very jealous over things like this.
• A home has an emotional attachment and that can make it very difficult to let go of things. If there are changes made that mom and dad don’t like or if you were to rent out the property, that can cause a rift in a relationship.
• Seller’s remorse is very real. Maybe mom and dad were all about moving to Florida when they retired but now miss their house more than they realized they would.
• There could be potential estate or tax implications in the future. These are always tricky situations.
• Buying a home from your parents means that you might not feel obligated to get a home inspection, land surveys, or relevant insurance, which could also lead to a whole host of issues down the road.
• If your parents “give away” their house or sell it to you well below market value, this could prevent them from receiving Medicaid in the future.
• There might be repairs or modifications that are necessary to the house that come up after the sale which can cause resentment and friction between you and your parents.
• If your parents were to ever file bankruptcy in the future (and the house is not legally yours) it could be repossessed.

So as you can see, it’s not as simple as a “sign on the dotted line” transaction.

There is a lot of work that goes into buying your parent’s home and you need to ensure that you do your research and that both parties are protected.

Don’t purchase your parent’s home just to be nice or to “keep it in the family,” you need to be sure that you are doing your due diligence and are ready to make this type of commitment.

Creative Ways to Buy Your Parent’s House

Now that we have gone over the pros and cons of purchasing your parent’s home, let’s look at some creative ways to do so.

1. Traditional Home Purchase

Ok, this one really isn’t that creative, but it is worth mentioning.

In order to go about buying your parent’s home the traditional way, there are a few things you are going to want to make sure you do so that everyone is happy.

• Go get pre-approved for a mortgage. No point in trying to buy their home the traditional way if you can’t get a mortgage.
• Get a fair market analysis and settle on a mutually agreed upon sales price with the sellers (mom and dad).
• Hire a professional 3rd party to get the sale done. This could be a realtor, financial advisor, tax, or real estate attorney to handle the contract and close the deal.
• Draw up and sign the purchase agreement.
• Have a 3rd party appraisal and home inspection done (include these contingencies in your contract).
• Go get the actual mortgage and finalize the sale.

2. Gift or Gift of Equity

One of the hardest parts for first-time homebuyers is getting together a down payment.

A “gift of equity” is when your parents could give you all or some of the equity they have already accumulated in the house which could be used instead of a cash down payment.

While this won’t get you out of credit checks and going through a mortgage company, it can help you from having to save up for years to afford your mom and dad’s house.

This is one tactic that you should certainly consult a tax professional as there could be unforeseen tax or financial implications.

3. Subject To

Subject to when buying a house is a very simple transaction but could come with some implications later on down the line.

Subject to, simply means that the seller is not paying off the existing mortgage when they get a check from the sale of the house. Instead, the buyer is taking over the existing mortgage.

This means that there is no formal agreement set in place with the lender, meaning that if the “buyer” does not pay the mortgage, then the owner must then continue to pay it.

This could be very beneficial if there are especially high interest rates and the owner has a much lower rate or is looking to get the sale done quickly. However, the lender could require a full payoff for this transaction to occur or the seller could go into bankruptcy.

Alternatively, this is also a great way for the sellers to avoid foreclosure.

So if mom and dad are on the brink of the bank taking their home away, this could be a quick tactic to save it.

4. Life Estate

If mom and dad wish to stay living in their home but want you have a bit more control over it (as they get older), then a life estate is a great option.

They get to age in place and remain in their home until their death as a “life tenant.”

Your parents would legally have the property until they pass and it would then be passed along to you, the “remainderman,” which means it would avoid going through probate.

When your parents pass the home would immediately belong to you, thus avoiding all those lengthy, legal complications.

Other Creative Real Estate Funding Techniques

While all of these might not be applicable to purchasing your parent’s home, it’s nice to have a few other options to consider when looking into any real estate purchase.

Here are more creative real estate funding techniques to consider.

5. Personal Loan

If your parents are willing, a personal loan from them could be an option to buy their home.

This could give you the cash you need for the down payment as well as some working capital for any repairs that need to be done on the home.

Realize though, you would still have to go through all the regular channels of getting a mortgage, but this could be a great way to get started on the home-buying process, especially if this is a first house for you.

Here’s a real easy way to ask your parents this personal question.

Hey mom and dad, I wanted to see if you might be able to help me out with a personal loan. I’m looking to buy a house and I was wondering if you might be able to lend me the money. I’ll of course pay you back with interest, and I’ll make sure to keep you updated on the home-buying process.

6. Lease Option

A lease option is when you as the buyer, agree to lease the property from the seller – mom and dad – for a set period of time with the option to buy it at a later date.

This could give you some time to come up with the rest of the purchase price or to fix up the property before making it your own.

It’s important to note that with a lease option, you would still be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

7. Rent to Own

Of course, the easiest way to buy your parent’s house is by renting to own.

This means that you would be renting the property from your parents with the option to purchase it at a later date.

This is a good option if you’re not quite ready to buy a house but want to start the process. It also gives you some time to save up for the down payment or to make any repairs that need to be made.

This option aslo gives you experience being a home owner. Learning how to clean your home or work with small rooms and closets will give you a better insight into owning a home for the first time.

Your parents would still be responsible for paying the mortgage, taxes, and insurance on the property.

8. Seller Financing

Seller financing is when the seller of the property – your parents – agrees to finance the purchase for the buyer – you!

This could be done in a number of ways, but usually, you would make a down payment to your parents and then make monthly payments to them until the purchase price is paid in full.

You can use this option if you’re not able to get traditional financing from a bank or credit union.

And, if you just need that extra time to save money!

It’s important to note that with seller financing, the buyer – you – will still be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

9. Hard Money Loan

When looking to buy mom and dad’s house, a hard money loan could be a solid option.

With a hard money loan, you can get the cash you need for the purchase price of the property and don’t have to go through the hassle of getting a mortgage.

One thing to note is that with a hard money loan, you’ll likely have to put down a larger down payment than with a traditional mortgage.

You’ll also be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

10. Cash-Out Refinance

If you want to buy your parents’ house, did you know you could use a cash-out refinance?

This is when you borrow money from a bank or credit union to finance the purchase of the property  – your parent’s home. With this option you will need to pay back this money with interest over a set period of time.

You are also responsible for paying things like property taxes, insurance, and any repairs that need to be made.

11. Self-Directed IRA

You could use a self-directed IRA to buy your parents’ house. With this type of account, you can invest in a number of different things, including real estate.

This could be a great way to get started in the home-buying process.

Of course, you will need to make sure that the property is for your primary residence and not for investment purposes.

You will also be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

12. Private Money

If you want to buy your parents’ house, you could use private money.

This is when you borrow money from someone else, like a friend or family member.

You will need to pay back this money with interest over a set period of time.

You will also be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

13. FHA/VA/USDA Loan

Another way to buy your parent’s house is you by using a FHA/VA/USDA loan.

This is when the government gives you money to help pay for the house.

With a FHA loan, you will need to put down a small down payment and then make monthly payments to the government until the purchase price is paid in full.

With a VA loan, you will not need to make a down payment.

With a USDA loan, you will need to put down a small down payment and then make monthly payments to the government until the purchase price is paid in full.

You will also be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

14. Crowdfunding

Did you know you can use crowdfunding to get money to buy your parents’ house?

This is when you ask a lot of people for money so you can buy the house.

You will need to make a website or go on a website where people can donate money to help you out.

You will also need to make a video explaining why you want to buy the house and what you will do with it.

You will also be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

15. Home Equity Line of Credit

While some of these can be used for first-time homebuyers, others might require you to already own a home.

If you do have equity in a property, you could use a home equity line of credit.

This is when you borrow money against the value of your home. You will need to make monthly payments on this loan and it will be based on the interest rate.

You will also be responsible for paying things like property taxes, insurance, and any repairs that need to be made.

Can You Purchase Your Parent’s Home and Rent it to Them?

The short answer is yes, yes you can purchase your parent’s home and rent it back to them.

There are many situations that this scenario might fall into.

Again, you just need to be sure that you are doing your due diligence, your research, and consulting with professionals to make sure that everyone involved in the transaction is benefiting.

Tell me your stories about buying your parent’s home!

Please pin me!