Question:

I need to buy my brother's half of a house willed to us. What is the best type of financing?

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My mother just passed away, and left the house that I am living in to my brother and I. What would be the best way to finance the half value owed him?

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  1. This is an easy transaction.

    See a mortgage broker and explain the situation. Once the estate is settled, and your brother is on the deed, you will ask for a mortgage just as you were buying a new home.  Since the process will involve a bank appraisal of the properties worth, you and your brother will have a professional unbiased price opinion.


  2. Since you only need to mortgage 1/2 I would go for a 15 year fixed loan.

  3. You get a mortgage, and the mortgage pays him off.  It's just as if you were purchasing any home, and he's the seller, even though he only owns half and you own the other half.  Since you own half, you use that interest as your equity in property (down payment).

    If you're on good terms, he could carry a mortgage and you could pay him off over time.  You give him a note (IOU), get an amortization schedule, etc. and pay him monthly.

  4. .   Go to a mortgage company.  On the date that the mortgage is recorded against the house, your brother signs a Warranty Deed for his half of the house over to you.  You now own the house by yourself. You brother gets the loan proceeds.  

    Or sign a note and pay him monthly.  Let the mortgage be with him instead of a bank.  He signs the deed to you and receives money each month.  If you don't pay him, he gets the entire house.

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