So my fsil came to FH and I to discuss us purchasing a home but with some strings attached.
She is willing to give us $40,000 + closing costs to purchase the home of our choice. She will be putting her name on the deed to help us with financing because I'm currently not working. My Mother and sister will be moving in with us to help out with the mortgage because I will be in graduate school for two years post wedding. (FH's, my Mother and sister's names will be on the deed.)
In return, once I get out of school and Fh and I want to get her off the deed....WE WILL PAY HER 1/3=33%, THE APPRAISED VALUE OF THE HOME.
Is this a good deal or no. My brother called me today ranting that she is trying to HUSTLE us,etc...I see exactly where he is coming from. He thinks that if she was doing us a favor, that she would just loan us to $40,000+ closing costs and let that be the only thing we have to pay back.
Initally I thought it was a great deal with the economy the way it is now...and the fact that we can get a home pretty cheap. But now I don't know. I did the math at for a home valued @ $300,000...we would have to pay her back $99,000 ( a profit on her part of around $49,000)
