Can I buy my parents place from them using a reverse mortgage?

I would like to pay for my parents upkeep . By having it strucutred as a reverse mortgage they are comfortable taking the money and it is tax free in their hands. As I am actually paying to buy the house I would also like to claim tax deduction on the monthly payments. Is it possible?Can I buy my parents place from them using a reverse mortgage?
Are you asking if you can be the reverse mortgage lender? Not if you are not a legal bank you can't.





You can buy their house with a conventional mortgage and just let them live there though. I did this with my mother, and will with my father if it comes down to that.Can I buy my parents place from them using a reverse mortgage?
it wouldn;t be a reverse mortgage, it could just be a private mortgage payable to them instead of to a mortgage company - to actually ';buy the house, you still need to go thru the legal process, which would entail real estate transfer taxes, closing paperwork, transferring everything to you - just get a real estate lawyer - much cheaper than a real estate agent -= get an official, legal mortgage drawn up to protect both of you - they will have to claim income on the mortgage interest income and you can deduct it - if you want the tax deductions - I think they have to declare the income - talk to a lawyer or CPA
You could buy the house from them, you get a regular mortgage on it, and you pay them money monthly for their upkeep. But if you buy the house from them, they could put the proceeds into something safe like a money market fund or CD's, and take interest monthly from that.





If they take out a reverse mortgage, they have basically sold the property to the lender, so no you couldn't buy it from them
You might also consider various types of trusts. Check with a financial planner or estate attorney.





A land trust is one version. In that case, your parents would move the property into their land trust. You'd be added as a beneficiary. The house now would be owned by a trustee. You'd make payments to the trustee, who would pay the mortgage (if any), and send the rest to your parents. Under this structure, you'd be able to claim the tax deductions (interest, taxes). More info at http://www.landtrust.net





Hope that helps.
What you said makes no sense.





A reverse mortgage gives your parents a monthly income from the equity in their home. You have nothing to do with it.





If you want to buy the home with your parents doing owner financing, your tax professional can advise you further.



No. You can buy your parents house if you want to but I do not think that you can do it as a ';reverse mortgage';. Where would you get the cash from to give them? A lender will not provide financing for this.
Strictly from a tax prospective unless you get the reverse mortgage in your name you won't be able to get a tax deduction.
You will need to clarify a few things and provide more info.


Who are you paying to buy the house?


Do your parents currently have a reverse mortgage?
If they do a reverse mortgage they don't have any payments. Therefore there is no tax deduction to be had.
you have to be 62 years old for a reverse. If your 62 and buying a home from your parents how old are they???

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