Is Gifted Equity Situation worth it for first home
My wife and I are looking to buy our first home soon. We live in a relatively HCOL area. Our combined household income is currently 95k but will be 110k+ by mid next year. We have been planning to purchase a townhome in the 330k range.
A house from a family member has recently become available, it is planned to be listed for 500k. But would be sold to us for 400k (20k down, 100k gifted equity, 380k mortgage). I estimate this would leave us with housing expenses near 50% of current take home. I work in a field with consistent raises and job stability so I believe it would become more comfortable in a relatively short period of time, and I am having a card time refusing what is essentially a $100k gift.
Are there any major holes I am missing in this situation, having never purchased a home I don't want to get into a bad situation. But being house poor for a short time seems worth it to get into something with far more equity than we would be able to put down anytime in the next several years.
Really just looking for thoughts or advice on the scenario, or if anyone has dealt with something similar. We would have a couple months emergency fund left after the down payment, and retirement is a guaranteed contribution from my employer so it wouldn't be reduced. The family member needs to move urgently so there is no waiting or delay to build up savings.