How to Buy Out Your Siblings on an Inherited House in Florida

When a parent passes and leaves the house to several children, one of them often wants to keep it. The others would rather have their share in cash. That is a buyout, and financing one is something I help Florida families with regularly.

I have been a Florida mortgage broker since April 2000. Here is how a sibling buyout usually works on the mortgage side, and what has to happen first. I am not an attorney, so you will also want a Florida probate attorney involved. The legal and lending sides have to line up.

Step One: Get the Title Right

A lender can only lend to someone who owns the property, or who is buying it from the people who do. Until the estate is settled, the house usually still belongs to the estate. Depending on the situation, that may mean formal probate, summary administration for smaller estates, or another process your attorney recommends. Florida homestead property has its own rules about who can inherit and how. That is another reason to get legal advice early.

Once the title is in the heirs’ names, or the estate is ready to sell, the financing can move.

The Two Common Ways to Finance a Buyout

1. Cash-out refinance after you inherit

If you are on the title as an heir, a cash-out refinance can pay your siblings their shares, and the new loan stays in your name. Conventional guidelines generally waive the usual six-month ownership wait when a property was inherited. You don’t have to sit on the house for months before you can refinance. Loan-to-value limits still apply, so the home needs enough equity to cover the buyout plus any existing mortgage.

2. Buy the house from the estate or your siblings

You can also buy the home outright with a purchase mortgage. Because the seller is family, your siblings may be able to give you a gift of equity, discounting the price toward your down payment. See how a gift of equity works. Purchases between family members are treated as non-arm’s-length transactions, which some programs handle with extra rules.

If There Is Still a Mortgage on the House

Federal law generally lets an heir who moves into the home keep an existing mortgage without the lender calling it due just because of the transfer. You may still want a new loan to fund the buyout, but you don’t have to rush into one. Talk to the current servicer early and keep the payments current.

If Your Parent Had a Reverse Mortgage

A reverse mortgage becomes due after the borrower passes. The heirs usually get a limited window to sell, pay it off or refinance. On federally insured reverse mortgages, heirs can generally keep the home by paying the lesser of the loan balance or a percentage of the appraised value. Timelines are strict, so contact the servicer quickly and call me so we can line up a new loan.

What You Will Need

• Documents showing the estate is settled or the title has transferred, from your attorney
• A signed agreement among the heirs on the buyout amount
• An appraisal. It also helps everyone agree on a fair value.
• Your income, assets and credit, the same as any mortgage
• A payoff statement for any existing mortgage

Related Situations

Buying out a spouse instead? See refinancing your house after divorce in Florida. Thinking about keeping the inherited house as a rental? A DSCR loan may fit. These are business-purpose loans for non-owner-occupied rental property.

Available for qualified borrowers. Program guidelines apply, guidelines may change, and lender overlays may be stricter. All loans are subject to credit approval. Any figures are estimates based on the information provided. This is general information, not legal or tax advice.

Nathan Young is the founder and president of North Star Mortgage Network, Inc., an independent mortgage brokerage in Jacksonville, serving Florida since April 2000, and the 2025 NAMB Mortgage Broker of the Year. Call or text 904-880-6741. NMLS #325206 | Company NMLS #356789. Equal Housing Opportunity.