I've got a quick question for some of you more experienced homeowners.

This is currently a hypothetical situation that might exist about three years from now, I'm just trying to figure out the smaller details...

If I were looking to sell a house that I have a Mortgage on to family, who is currently out of the country and looking to retire here but will have NO established credit, if I were to sell them the house for ONLY the amount OWED on the Mortgage, would they still need a down payment of 20%?

We're talking about a Mortgage for $250,000 that will likely be down to the last $75,000 or so by then, so the house will have a LOT of equity, not counting any change in value.

So, the real question is, will a bank care about a 20% "down payment" on a $75,000 loan when they're being handed a deed/title that will likely have $150,000+ equity on it?