Mortgage vs. home equity loan situation?

my father and his two brothers were gifted my grandfather's house when he passed away. i told my father i would like to take the house from them so he moved the house from my grandfather's trust to my name. in return i need to pay them for the house. however, because i will now already own the house, can i still get a mortgage to pay them or can i only get a home equity loan? i ask because mortgage rates seem much lower than loan rates. are there any other options?

If you planned to rent the home you could get a mortgage based on the rent it will generate. I would ask you local banker about there loan programs for income property. Also mortgages are cheaper interest rates then home equity loans.

The bank will want to know how you planned top pay them back! You are most likely able to get a equity loan or a mortgage in this case. The mortgage would be a cheaper route.

The key is your income and credit.

You should get a mortgage. It will work like a refinance of a land contract.