Advice Please: Buying Home with MIL

[Anonymous]

Hi, hoping you all can give me some advice.

Long story short my DW and I currently rent, my MIL owns a house outright, and does not have much other asset.  She wants to sell, and us 3 somehow collectively buy a home.  DW and I have never owned before.  She's willing to give us 20% for down payment.  Is dead set on new construction (to avoid home repairs like roofing, water heaters, etc since collectively we dont have large savings accounts).

I am looking for help understanding

(1) Can we expect to get a good loan?   my Fico 8 are: EQ 736, TU 723, EX 718.  Wife's will be slighltly lower but in ballpark

(2)  What are the advantages/ disadvantages of having her as a co-owner?

(3) Would it be better to buy pre-existing?

(4) Where should I start if we're serious about this?  Financial advisor?

(5) What likely option(s) for loan type, % down, etc should we be looking at?

Just a little more background, DW is one of 4 siblings; the others dont want her with them.  We'd be treating the down payment as our inheritance, which they'll likely not be much of one left once the last years of care happen. 

DW & I Overview

HHI: about $100K

Total CC Debt- $3k

Student Loan debt- $180K

Thanks in advance for your assistance

[Anonymous]

Hi, hoping you all can give me some advice.

Long story short my DW and I currently rent, my MIL owns a house outright, and does not have much other asset.  She wants to sell, and us 3 somehow collectively buy a home.  DW and I have never owned before.  She's willing to give us 20% for down payment.  Is dead set on new construction (to avoid home repairs like roofing, water heaters, etc since collectively we dont have large savings accounts).

I am looking for help understanding

(1) Can we expect to get a good loan?   my Fico 8 are: EQ 736, TU 723, EX 718.  Wife's will be slighltly lower but in ballpark

(2)  What are the advantages/ disadvantages of having her as a co-owner?

(3) Would it be better to buy pre-existing?

(4) Where should I start if we're serious about this?  Financial advisor?

(5) What likely option(s) for loan type, % down, etc should we be looking at?

Just a little more background, DW is one of 4 siblings; the others dont want her with them.  We'd be treating the down payment as our inheritance, which they'll likely not be much of one left once the last years of care happen. 

DW & I Overview

HHI: about $100K

Total CC Debt- $3k

Student Loan debt- $180K

Thanks in advance for your assistance

[DollyLama]

Disadvantages- not contributing their share of property taxes and insurance, general disagreements which can snowball heavily.

Biggest disadvantage- If MIL should pass before you and your wife, her share would be divided amongst the siblings, they can ask you buy out their share, or take to to the courthouse steps with a partition in kind sale, you would lose a massive amount of money on the sale of the home at a Master Commisser's sale, not counting the thousands of dollars in court, attorney and referee fees.