Low income Dad owns house outright, lives alone, needs to move and live with us. What's the best way to sell his house and get a big enough one for he and us? My dad is 76 and his health is declining. He is very low income, surviving on SSI alone. He lives in an old house in a small town a couple hours away from us. It's about time for him to not be living alone anymore, and we're trying to figure out the best way that we can get a bigger house, possibly with a guest house so that he can live with us.
I have concerns about the financial ramifications for both him and for us (family of 4 My wife, myself, and two small children), and about the best way to make this happen.
He owns his house free and clear, no debt on it whatsoever. It's not in the greatest shape, and we're not sure what it's worth, but let's say $80,000. He's not ready for assisted living yet, but that could change anytime. He gets his medical care through the VA.
Ideally he could sell the house, and we could take the money form that sale and put it down on a house in our city. The sale of his house will almost certainly not pay for a house large enough for all 5 of us, so my wife and I could take on the mortgage payments for the difference. We'd likely be paying a lot less than if we bought a house ourselves, since we're not wealthy, don't own a home yet, etc., and the sale of my dad's house would make for a large down payment.
My main question is what's the best way to go about it? We've thought of him signing the house over to us, we make the sale and use the money to buy a house and have him live with us. But I've been reading about stipulations with Medicaid where they can penalize him for up to 5 years for doing something like that.
So would it make more sense for him to buy the new house and we live with him and pay the mortgage payments? I just don't know how that will affect his social security income.
I know this is a long one, and I thank anyone who takes the time to read it and comment.