How to buy a friends grandparents home with no deposit?

[Maurice Clark]

My best friend grandparents are probably going to sell one of their homes to pay for elderly care, my friend wants to buy it and so do I. What options are out there to make this happen with no more than a few grand out of pocket? The house is in northern CA, ARV roughly $390,000-$450,000, currently worth $200,000-$250,000 as it needs a lot of repairs ( foundation, roof etc...). They currently still owe $125,000 as it was refinanced years back but they've owned the house well before the 1940's. It's a 3br, 2 bath 1,634 sq ft. A home around the block recently sold for $690,000 fully updated and spot on with bedrooms and sq ft. Another home 2 doors down just sold for $475,000 with only the inside updated also 3 bedrooms 1 bath but only 1200 sq ft.