[quote=rent4now]So why do you think it is ideal to have the in-laws carry back the loan?[/quote]
If you go through a bank, you’ll have to put a substantial down payment, have an LTV of 75%-90%, or less, possibly pay PMI, etc. And you have to go through a cumbersome underwriting process: banks currently scrutinize your finances, any movements in your bank accounts, your obligations, etc.
If the in-laws carry the note, you are free to pick any LTV you chose, even 100%, without having to pay PMI, and you won’t have to give your SSN, DOB, DL#, etc., to an unknown bank underwriter. You won’t have much of closing costs either. Just make sure you record the note with the county recorder.
Of course, I’m assuming that your in-laws want to be generous. However, nothing prevents them from demanding a market or near-market price, 20% down, market interest rate, or even making the note callable.
I’m also assuming that you have excellent relations with your in-laws.
