My wife and I are considering some options to purchase a new home which contains the separate casita which my parents would occupy. They are nearing retirement age, and we have carefully considered the social aspects of such an arrangement so I don't want to focus my topic to those questions, but would like to see if there are experiences from this forum around more the core financial aspects. For background, our contribution to the arrangement as well as our goals are different but complimentary in many ways. My parents have more equity to contribute, but would like to find ways to minimize their monthly expense. We have some equity to contribute, but have the higher income to be able to carry the larger percentage of the note. We are considering houses which would require a jumbo loan somewhere in the $800k - $900k range. We collectively plan to put between $400k and $500k as down payment. Here are my questions:
1. Is the only mortgage option to carry a jumbo loan with both families on a single note? Or can a loan be packaged I such a way as to be separate conforming loans tied to the portion of the mortgage each family would take on? I understand the lien had to be tied to both, but is this something which lenders could package?
2. My credit is stronger than my paerents due to some marks on their credit 5 years ago. If we elected to not include them on the mortgage but did include them in the deed, could they contribute financially toward the down payment and mortgage without it being deemed a gift?
3. Are their certain types of trusts which we should look into creating which provide the proper protections? In particular a clause which immediately passes title in the event of death of one of the parties outside of probate?
4. If I wanted to speak with a professional on these types of questions, what type of professional service would these be best addressed by (trust attorney, financial / estate planner, etc)?
Appreciate any thoughts / comments.
1. Is the only mortgage option to carry a jumbo loan with both families on a single note? Or can a loan be packaged I such a way as to be separate conforming loans tied to the portion of the mortgage each family would take on? I understand the lien had to be tied to both, but is this something which lenders could package?
2. My credit is stronger than my paerents due to some marks on their credit 5 years ago. If we elected to not include them on the mortgage but did include them in the deed, could they contribute financially toward the down payment and mortgage without it being deemed a gift?
3. Are their certain types of trusts which we should look into creating which provide the proper protections? In particular a clause which immediately passes title in the event of death of one of the parties outside of probate?
4. If I wanted to speak with a professional on these types of questions, what type of professional service would these be best addressed by (trust attorney, financial / estate planner, etc)?
Appreciate any thoughts / comments.