Q: My parents are having financial problems and want my brother and I to purchase their home from them. They will continue to pay for everything and would like to buy the house back from us in a year or two.
Are there other options to help them besides putting my good name on the line? Also, I will be getting married later this year and my fiance and I would like to purchase a home of our own in 2 to 3 years.
Will this hurt or hinder my chances?
A: If you’re going to purchase the house and then sell it back to your parents in a year or so, as long as you and your brother get a mortgage and make the payments, it should help your credit, not hurt it.
However, what happens if your parents can’t afford to buy back the home? Then, you will have a large financial obligation on your credit history and it will have an impact on your ability to buy a home for yourself, unless your husband can afford to buy a home for the two of you on his income alone.
Please talk to a real estate attorney. If you’re going to do this for your parents, you’ll want a solidly worded contract that protects you and your brother, not to mention your parents.
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