Zillow Advice: Home Buying - my inlaws have a consolidation loan with their current residence as collateral. http://www.zillow.com/advice-thread/my-inlaws-have-a-consolidation-loan-with-their-current-residence-as-collateral/468779/ Zillow Advice | Zillow Real Estate If I were in your shoes, ... http://www.zillow.com/advice-thread/my-inlaws-have-a-consolidation-loan-with-their-current-residence-as-collateral/468779/ If I were in your shoes, I would spend more time looking for a satisfactory rental that will accept pets.&nbsp; Renting offers more flexibility for changing circumstances without major financial long term commitments. &nbsp; I sympathize with the challenges of aging parents and rapidly changing circumstances - it isn't easy.<br/><br/>Most states have down payment assistance programs, but what you describe sounds very difficult for approval for a mortgage even if you did get some assistance with a down payment.&nbsp; The status of your home in foreclosure will disqualify you from getting a mortgage, perhaps your parents have sufficient income. &nbsp; With the current home so severely underwater, loans will require a significant down payment (far more than offered by down payment assistance programs).&nbsp; Yet, you say no cash if available for down payment. <br/><br/>With the current health uncertainties, one can't predict the future and say what sort of housing is ideal for moving forward.&nbsp;&nbsp; This makes it even tougher for making a major financial commitment. <br/><br/>Good luck.&nbsp; <br/><br/><br/> Sat, 17 Nov 2012 04:33:00 GMT http://www.zillow.com/advice-thread/my-inlaws-have-a-consolidation-loan-with-their-current-residence-as-collateral/468779/ 2012-11-17T04:33:00Z