My parents bought my house with cash when I was going through a divorce, and now I owe them 1/3 of the money back. What is the best loan option for me to get so I can make one payment back to them? the house is in their name and I would like that transferred to me as well? should I now get a home loan and buy it for the lesser amount?
Assuming you're in the US, you can buy the house from your parents for $100k with a mortgage, and the excess value (less annual gift limit) will count against your unified federal gift and estate tax exemption. So at $300k value you'd take $172k against your total exemption ($200k value over price paid, less $14k per parent). No gift tax liability on your parents' end, unless the exemption has already been used up.