[dualityoftapirs]

My understanding of the comment is the way the parents would get the money is to liquidate something which would incur taxes, which will be a lot in taxes on $200k even with long term capital gains treatment.

[than3]

Yes, this was the general sentiment.

There may be loopholes and financial engineering that can be done, but its generally not available to the average joe.

I looked into this as a possibility not too long ago, and the professionals we spoke with basically said you'd either need them to take care of the taxes or be co-signer.

Co-signer rights effectively negate the point of getting 'your' house, and can lead to a lot of drama.

[singleshot_]

Best bet is probably to have them own the house and step up in basis when they move on, if you're really worried about taxes.