MW We are retirees. Are we too old to take out a mortgage in Pennsylvania so we can escape the Florida heat?
By Quentin Fottrell
'We are 66 and 76, respectively. We own our home, which is paid off.'
"We were considering a VA loan, to have the funds for updates without touching our CD or money-market fund." (Photo subjects are models.)
Dear Quentin,
My husband and I live in Florida. We are 66 and 76, respectively. We own our home, which is paid off. Our daughter has a home that she inherited from my father, in a rural area of Pennsylvania. She works as a registered nurse, and recently divorced. She lives in Ohio. The house is small and needs work. She is renting it out until December, but would like to buy a home in Ohio as she still has a middle-school child there.
We offered to buy the Pennsylvania home from her; of course, we'll be doing work on it (roofing, windows, new furnace and air conditioning, etc.). She thinks it's a great idea, as it would also give us a place to go out of the Florida heat. Now, eventually, she is going to inherit the home. We were considering a VA loan, to have the funds for updates without touching our CD or money-market fund.
We want to borrow $160,000 on a $143,000 home to bring everything up to date, help her and also give us a place to go up north. We have zero debt now, and we are on Social Security with an 800-plus credit score. The house is currently in her name; we would like to add her, rather than have her go through everything again to get it back in her name once we no longer need it. I hope this makes sense. Our estimated payoff would be two years.
We're trying our best to make things good for her, and for us at the same time.
Florida Mother
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.
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It would seem cleaner for your daughter to sell this home and buy in Ohio, and for you to either pay for a home nearby and/or an accessory dwelling unit.
Dear Mother,
I don't love the idea of you taking on this debt in your 60s and 70s.
You will be in Pennsylvania while your daughter and child will be in Ohio. Is this the outcome you want? It would seem cleaner for your daughter to sell this home and buy in Ohio, and for you to either pay for a home nearby and/or an accessory dwelling unit. Or you could find a place for two months of the summer in Ohio or Pennsylvania on Airbnb $(ABNB)$. On the plus side, you appear to have the income and/or cash to pay off the house within two years, without taking on additional debt.
A VA loan is used for a primary residence. "Most VA lenders require you to sign mortgage documents indicating you plan to live in the home as your primary residence for at least 12 months," according to Veterans United, which offers home loans to vets. "However, these documents also offer flexibility, allowing you to cease occupancy or sell the home before the 12-month period if you have a valid reason that your lender approves."
I'm not convinced this second home is a good investment or affordable.
In your case, this would likely be considered a second home, not a primary residence, which makes a VA loan difficult to qualify for. A home-equity line of credit (HELOC) on your Florida home or a cash-out refinance would be more feasible. Alternatively, a renovation-specific loan to fund both the purchase and improvements is another option; these loans are based on the "after-repair value" rather than its current condition.
Furthermore, borrowing $163,000 for a $140,000 won't fly with most lenders, whether you're looking for a VA loan or seeking a loan from your local bank. I'm not clear why you have to borrow the money if you intend on repaying it within two years; if you do have accessible cash, you could try borrowing against your existing house. Without more detailed insight into your finances, I'm not convinced this second home is a good investment for you or affordable.
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Fair market value
You'll obviously still have to factor in all the property taxes, lawyer fees and other costs into buying this home from your daughter, and it will cost her money to sell it. Another option would be to loan your daughter money to move and talk about shared ownership of the Pennsylvania house given that she is, presumably, going to inherit the house a second time (from you and your husband after you pass away). And get an independent appraisal of the fair market value.
If you do go ahead with the purchase, pay careful attention to your title deed. You may decide to keep the property solely in your name - which would give your daughter a tax-advantaged step-up in basis when she inherits it - rather than adding your daughter as a co-owner. Or you could set up a transfer-on-death deed or life estate. All of these would have different outcomes for taxes and inheritance, not least your control over the property.
If you do go ahead with the purchase, pay careful attention to your title deed.
I've received many letters from readers who purchased property from family members only to regret it. This man purchased his parents' house and added his brother to the deed; the brother stopped paying the mortgage. Another reader accepted $300,000 from his in-laws so he and his wife could buy a home, only to receive a demand to give their niece $125,000 when they sold the house. It's hard to know where bad planning ends and bad intentions begin.
This is a time of life when you should, ideally, be simplifying your finances, and concentrating on ensuring that your own estate plan is up to date: healthcare directives, durable powers of attorney, living wills, and long-term-care plans. I'm concerned that you're trying to do too much with this one transaction. Would you like this place if your daughter had not inherited it from your father? If not, please rethink your plans.
This may be a financial burden masquerading as an opportunity.
Related: 'I plan to take out a mortgage': My father died. Should I buy the family home from my mom at a 40% discount?
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More columns from Quentin Fottrell:
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'I was shoveling sidewalks at 8 years old': I'm a 73-year-old boomer dad with two kids. Here's what I teach them about finance
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-Quentin Fottrell
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May 06, 2026 13:30 ET (17:30 GMT)
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