: You get the same favorable interest rates and low down payment requirements (as low as 5%) as a primary residence, even though you won’t live there.
Depending on your goals and the relative's financial situation, you can structure the purchase in several ways: buying a house for a relative to live in
: You act as the bank, lending the money directly to your relative at a minimum interest rate set by the IRS, known as the Applicable Federal Rate (AFR). 2. Understand Ownership and Legal Structures : You get the same favorable interest rates