Buying A Home With Owner Financing

Interest rate, that depends on how long of a loan and how much you putting down on it.

You need to have it apprised and also have a complete home inspection.

If the old man passes, his family will get the money.

I dunno, if you qualify for 4% and have the 20% cash downpayment, I would not be looking at the owner financing. Call me cautious, but it's a cleaner, neater deal to borrow from a bank and be done with things once you sign on the dotted line.

You say that the seller is in early stages of dementia, by your reckoning. I wouldn't want to enter into any contracts with someone who's competency might be questioned after the fact. Nor would I want him to have any "hold" over me or interest in the property once the sale goes through. If he's holding the mortgage, he may feel entitled to take his sweet old time moving out, or visit the property whenever he wants, or object to the color you've painted the shutters, or that you uprooted Dear Departed Late Wife Martha's beloved rosebushes planted on their 25th anniversary.

Get your loan from the bank, buy his house, move on. If you want to have a relationship with him out of kindness, feel free to do so. But I sure as hell wouldn't want to be owing him money if he's headed for what could be a decade of mental decline. The 1.5% interest you save will not be worth the potential headaches.

Log off TD. Contact an attorney/thread.