Buying A House For A Relative To Live In May 2026

: If the relative doesn't meet the "disabled child" or "elderly parent" criteria, you can buy the home as a second residence or investment property.

: You act as the bank, lending the money directly to your relative at a minimum interest rate set by the IRS, known as the Applicable Federal Rate (AFR). 2. Understand Ownership and Legal Structures buying a house for a relative to live in

Depending on your goals and the relative's financial situation, you can structure the purchase in several ways: : If the relative doesn't meet the "disabled

: Usually requires a higher down payment (often 15–25%) and carries higher interest rates. Understand Ownership and Legal Structures Depending on your

: You can find these options through major lenders like SoFi or FNBO .

: This is a specialized conventional loan option that allows you to buy a home for an elderly parent or a disabled adult child who cannot qualify for a mortgage on their own.

: Typically requires the home to be a certain distance from your primary residence (often 50+ miles) and may have higher rates than a primary mortgage.