I am in the market for a house and with the market being so competitive, I have made an agreement with a family member to put up the cash for the house and I will turn around any pay them back through a mortgage. But what is the best way to do this? I do have VA loan benefits and I would be paying them interest for the temp loan preferably rolled into my mortgage. My thoughts are: 1. The family member buys the house in their name cash and after the closing, I turn around and purchase from them plus interest. I’m assuming they would pay capital gains on the interest made but with this option, we are paying for two closing costs.
We buy the house in both of our names and the family member pays cash. I would then take out a mortgage to essentially buy them out plus interest.
The family member gives me the cash and I purchase the house in my name. Maybe they take out a deed of trust and I then use a mortgage to pay them back with interest.