Wow. I guess this is more complicated than I thought.
My mother would not be able to qualify. She is handicapped and has no job. She would, in theory, move in with us and we would use her properties to leverage as down payment for the house we would all live in…so I guess she would need to take out equity and give that money to me which I would then use as a down payment? I think there are severe tax penalties for doing this, which I of course would want to avoid.
But to simplify, I still am not sure of the basic principle of whether or not one should take out equity or simply sell the property for a down payment.
Do all brokers posses the knowledge to deal with this kind of issue?
