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Can a family member buy a house and have another family member live in it?

My brother and his wife are going through a short sale on their current home. I told them that after they sell I would buy them a home until they are able to finance it for themselves. I know it will take 2-3 years for them to be able to finance after a short sale. I have already been approved for a home purchase, but was just wondering if we can do this arrangement. Will the bank finance me if they knew what we are planning on doing? Do I even need to tell them what we are planning? My brother and his wife make very good money and are wanting to downsize, so I know there would be no problem with them making the payments.

  • June 04 2013 - Atlanta
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Answers (6)

This will typically be financed as an investment property.  So yes, this can absolutely be done as long as you qualify to buy the home.  That was very nice of you to do for your brother.
  • June 25 2013
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George, you may want to observe a second before you jump in. The question is old, and you can't give out your digits and coordinates. This isn't Trulia. Spamification is frowned upon in this establishment. Subtlety is required. I flagged your spiel so you can see what happens to it.
  • June 24 2013
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Stephendawgs,

[self promotion deleted by Zillow moderator]

George Cohen
Mortgage Banker
Brand Mortgage Group
[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines
  • June 24 2013
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You will be purchasing the property as an investment with a larger down payment than what an owner occupied property would require. The loan qualifications will be based on your income, debts, assets, etc. What you cannot do is omit the fact that you will not be living in the property. It doesn't matter what kindness you are doing for your brother and his wife. It must be considered an investment property purchase. One of the biggest hot-buttons in today's lending is occupancy fraud, so just spell it all out. [Content removed due to self-promotion. Please refer to our Good Neighbor Policy for more details.] I am licensed in GA.
  • June 05 2013
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You can, of course, buy another home for a family member!  However, you will need to be honest and let the bank know that this is NON- OWNER OCCUPIED.  The biggest issue is that your financing options are more limited and you may need a larger down payment.  Good Luck!

  • June 04 2013
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You would have to purchase the home as an investment property and then you should have no problems. 
  • June 04 2013
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