Hello,
So, I’ve rented a home fully-owned by my mother for years and finally am thinking of trying to purchase this home from her. The home is expected to appraise for at least $600K, and my mother is willing to sell me the home for $400K. We are thinking of trying to use the $200K decreased price as a “gift of equity” and down payment on the $400K house.
If I am able to secure a mortgage loan using this gift of equity/down payment and borrow an additional $200K, will my mother receive apx $400K upon selling me the house?
I really want to keep the house within our family and give my mother the full selling amount she is asking.
Thank you for your response.