Parents want me to take out a loan/mortgage in my name towards new house. Please advise.
This is a throwaway account, just in case, but I’m a 27 year old with pretty good credit (>750). I currently live at home and only make ~$40k a year. Our family needs to move since the house we are in is too expensive for us to continue staying at, so we are trying to sell the house ASAP. Once sold, my parent are trying to buy another smaller, cheaper house. The catch is, they want me to be on the mortgage. From what I understand, it seems that I’m to apply for the loan since my credit history is better, but my parents would be making the monthly payments and the down payment towards the house. I’m not sure if they can buy a house if it’s not in my name. They also stated that before applying for a loan, they would pay off my student debt with the money they get from selling the house.
My parents want to be able to leave the house for me to live in after, but honestly, I don’t plan on living with my family after 2 more years. My siblings will also (hopefully) be out of the house in 2 years due to potentially going to college.
I’m not really sure what I’m asking here, but any advice or input would be appreciated since I’m kind of at a loss for what to do. I do plan on sitting down and having a more detailed discussion with my parents since it seemed like they glossed over a ton of details, but if you have any suggestions as to what topics I should touch on, I’d greatly appreciate it.
Thanks for reading.
edit: I’ve read through all the comments, and you guys have been really helpful. Thanks for taking the time to write me a comment.
After doing some estimated head math, I think my parents should be fine on their own after selling the house/paying off old mortgage, but do you guys have resources to share to prep me better for all this house buying stuff? I want to have a better idea of how it all works, not just for myself, but maybe I’d be able to help my parents see if there are better options for them.