<prompt> Human: Hi PF!,My sister and I want to start investing in homes right now but the capital has been the biggest hurdle for us. My parents are close to paying off their current home and are allowing and encouraging us to use it for investments. BackgroundBoth my parents credit scores are exceptionally low, they have been bad with money and in contrast my sister and I have high credit scores 700-800. The house is in my parents name and they owe less than 20k on it as of now and its worth over 450k. My sister and I have a combined income of over 200k pre-tax with only one of us having student loans. I currently still live with my parents so my expenses are not much 600month. InvestingMy sister and I want to start investing in homes in our area because we believe it is a good time to buy now. The problem is that homes in our area are 500k and to put 20 down is difficult. Right now it is a sellers market in our area but we still believe that it is the right time to buy.Questions Is this a reasonable action to take to buy a home? Should my sister and I put our names in the current loan for our parents house? Should my sister and I just pay off the house for my parents? They want to eventually give us the home. Would my parents credit scores be a hurdle in trying to get a new loan? Are we being to naive and rash?Thanks!  <response>: No. You cannot use a property you do now own as collateral. Neither can your parents since they still have a mortgage lien on the property. But to answer your questions... Is this a reasonable action to take to buy a home?No Should my sister and I put our names in the current loan for our parents house?No, why? Should my sister and I just pay off the house for my parents? They want to eventually give us the home.No. Why do your parents want to give you their house while they still live there? Are you going to sell it? Im confused. Would my parents credit scores be a hurdle in trying to get a new loan?Your parents credit scores does not affect you. Are we being to naive and rash?yes.If you are pulling in 200k, why not just save up for a down payment? It should take you a year. If it is a good time to buy today then it will be a year from now. 