: If the relative doesn't meet the "disabled child" or "elderly parent" criteria, you can buy the home as a second residence or investment property.
: 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
: Usually requires a higher down payment (often 15–25%) and carries higher interest rates.
Depending on your goals and the relative's financial situation, you can structure the purchase in several ways: