Taking Over a Mortgage Loan
My parents currently own a home in Seattle, Washington. It's worth about $160k, and they owe an FHA loan of about $140k on it. I recently purchased my first home and moved my parents in with me so that they can cash flow the home (currently $300 a month) and keep some extra money to themselves.
My parents don't make a lot of money and are in their retirement age. There's a lot of low-income programs they can qualify for, but because they have this home as an asset, they aren't able to qualify for those programs. I want to take the home out of their name and into mine, while keeping the financing (since it has such an incredible rate @ 3.25%). I don't want to sell it because it has sentimental value to them; it was their first and only home.
Any advice on how to do this? I heard about "Subject To", but not sure how well it works in WA state. It sounds like the bank could possibly foreclose on the house if I do this...?