Legal Question in Real Estate Law in California

If you two decide to go this way, you should write up a simple agreement as to what you have in mind -- is the $100,000 a gift, or is an investment in a house that may make your father an owner or the owner? There are tax and ownership differences.

If the $100,000 is entirely a gift, you'll be the sole owner, but there can be serious tax consequences including gift and future capital-gains tax effects that could be avoided, at least in some part. I am not a tax expert, but the two of you should discuss your ideas with one.

If the $100,000 is not a gift, it may be a loan to you, or it may be an investment in the house. This will depend upon what your agreement says as well as how you instruct the escrow company and naturally what you tell the lender should be compatible with your agreement and the reality of what you do.

It may be better to have your father buy and own the house, and you rent it for a cash-flow-neutral rental, then have your father set up a living trust to own the house, with you as successor trustee and heir. A tax advisor or estate planner may be able to show why this will avoid probate and save present and future taxes.