Buying A House For A Relative To Live In -

: You get the same favorable interest rates and low down payment requirements (as low as 5%) as a primary residence, even though you won’t live there.

: You act as the bank, lending the money directly to your relative at a minimum interest rate set by the IRS, known as the Applicable Federal Rate (AFR). 2. Understand Ownership and Legal Structures buying a house for a relative to live in

How you hold the title determines what happens if someone passes away or if you decide to sell: Helping a family member buy a home - Merrill Lynch : You get the same favorable interest rates

: You can find these options through major lenders like SoFi or FNBO . Understand Ownership and Legal Structures How you hold

: Usually requires a higher down payment (often 15–25%) and carries higher interest rates.

: Typically requires the home to be a certain distance from your primary residence (often 50+ miles) and may have higher rates than a primary mortgage.