Interfamily deed of transfer

[Administrator]

Hi, my mom's dementia/Alzheimer's is getting worse and my dad is breaking down. I am considering moving back home and buying their home so it stays in the family. There is still a mortgage and any equity would be mine since my sibling will be giving up their rights if I move in and take care of my parents.I have over 720 FICO but won't have a job if I move back home...may take awhile to find one in this market.I've been informed to do an interfamily deed of transfer rather than apply for a loan since their rate is fairly low for the next 2 years. I was also told to keep copies of the mortgage payments as proof so I can take the tax deduction and when I need to apply for refinancing to show that the house is mine. After six months or a year, I can remove my parents name from the deed, but I should have them apply for a home equity line now so I have access to the equity in case it's needed. It'll be easier and that way I can wait out the year before refinancing or whatever. Seems to me this is a good tax benefit to me and the property tax won't be reassessed. Is this right or is the broker pulling my leg? Is there a gift tax issue? Any help is appreciated.Thanks.


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(Source: mortgagefit.com)