[fintstone]

Originally Posted by HarryD

I did this with my dad. 30 yr interest only loan. We did it proper with a loan agreement and filed as you would a regular mortgage. If my dad passed prior to maturity, I would inherit the loan as part of his assets and own my home.

Done right not a bad thing.

My dad passed after 20 years and all is ok.

I did very similar to this when I bought my mother's house that way after my Dad died and she moved out (10% down and a 10 year mortgage), and converted it to a rental. I was very careful to get a lawyer to drew up papers and make sure it was kosher. Especially since there were other brothers who might think I pulled a quick one. No qualifying, etc and only about $100 to a lawyer. It was for 8% interest when that was around the going rate. It worked just like an annuity for my mom and I didn't refinance when rates dropped but paid the original amount until it was paid off. We both got a good deal and I preferred for her not to get the money all at once because she would have blown it and I would have had to take care of her anyways. If she had died before it was paid off, I would have just paid my 2 brothers each 1/3 of the remaining balance.