Landlord
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In the US you can not obtain government help with rent if you are related to the landlord.
As long as you are not talking about a short sale and you can cover all of the liens your parents have on the property you can buy it, just like anyone else.
You will not be able to purchase it at a short sale though.
If they apply for any government benefits (like health) for the next 5 years the government can see this sale as an attempt to hide assets, which is illegal. Just make sure they so not apply for any assistance from the state or federal government for the next 5 years. |
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doctorevil64
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Why would the government ever contribute to rent? |
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Sweetharttt
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Yes, you can buy the house from your parents and rent it to them. You will have to claim the rental amount on your taxes.
However, because you would be renting to your parents, the government will not contribute anything towards their rent. |
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Doctor Deth
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some states have rent assistance programs for senior citizens, but they might not accept a situation involving a family member as a landlord - Section 8 housing doesn;t allow related parties |
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Real Estate Guy
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Sure you can do this. HOWEVER, the lender will see this property as an investment property - so you will be required to put 10-20% down and the rate will be higher.
Why would the GVPT contribute towards their rent? However, it doesn't matter as long as they are paying you fair market rent. |
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chatsplas
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WHY should the government contribute to their rent? NO ONE owes you, or your parents, a living.
You can certainly buy your folks' house and rent it out to them, IF you have good credit, down payment, and qualify for a mortgage. However at a Short Sale or foreclosure, you probably CAN'T buy their home. Why not help them out with their arrearage now? |
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Margaret S
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You wont get LHA as you are related to your tenants.
Even non-related employees of a landlord cannot get help if they live in one of his/her properties. |
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Ken D
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If the house is mortgaged by you then you will have to inform the mortgage lender that you are renting the house out, and when they retire there is no reason why they cannot apply for benefits. |
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spring_rainbows
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You can buy the house and rent it back to them so long as oyur morgage will allow you to lease out the morgaged property, however the council DON'T pay housing benefit to people who rent from relatives. The government classes people who rent from close relatives as not being responsible for the rent.
The info below is from the CAB website, you will notice what they state about renting from close relatives ( the far bottom part):
"Who can get Housing Benefit
You can only get Housing Benefit if you are responsible for paying the rent for your home, or live with your partner who is responsible for the rent. Only one member of a couple who live together can claim Housing Benefit. You must also live in the accommodation for which you are claiming Housing Benefit.
There are some people who will be treated as though they are not responsible for paying rent even though they are paying it, for example, if you are renting from a close relative."
The council under no circumstances will pay your parents to live in your house, it's just not done that way. Family members are suppose to look after there own, meaning if your parents can't afford the rent then you as the landlord should not make them pay. If you can't afford the morage without the help of your parents housing benefit then you shouldn't take over the morgage. |
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james m
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Sure you can buy their house and rent it to them,but you will have to go through Social Services to find out if they qualify for help on their rent.You being the daughter has nothing to do with it.This is a state issue,and may vary from state to state. |
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Neesters
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It might not be, but many related party transactions are regulated. If it is SSC that is contributing money, give them a call and find out.
It might not be worth it all together though because of the tax implications. Related party rules for buying and selling real estate are pretty strict, and it wouldnt be unbenificial to buy/sell to each other at anything but a market price. |
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Cari
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If they are entitled to Housing Benefit, then yes, this would payable anyway whether it was a relative or not that owned the property.
However, most of those who claim state pension are not entitled to Housing Benefit in the first place.
If they are very close to retirement age, the best option may be for them to apply to a council-owned retirement home, which would have an affordable rent. |
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ScreaminJock
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Nothing to stop you doing that. If it is Council owned though, I would question my morals, you would be charging rent and still make a healthy profit when you sell? |
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Othniel
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Have you looked into a reverse mortgage? If they are 62 or older they can get a reverse mortgage.
If you are asking about section 8 housing allowance then I would go by their local office and talk to someone before you ever do that because they often have long waiting lists and getting on the list is not that easy.
If you bought the house and let them live in it for only the upkeep and utilities both of you would benefit in the long term but if that is not doable then check out the reverse mortgage. |
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honker
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Yes, you can purchase the house. As a daughter your doing a good thing. If this is their main house they can take a tax deduction up to $250,000, if the house sell past that amount but check the tax law.
You can RENT to anybody. The only payment the Gov't provides after social security if they qualify, is NOTHING ! You might want to check with the new OBAMA program. BUSH never gave anybody in AMERICA anything. |
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