First Time Buyer: Buy House In Cash Or Take Out A Loan?

I’m in a fortunate but unique situation. My wife and I have been looking daily for the past 6 months or so and an opportunity came up in a neighborhood we love and below our initial price-point.

I run a business and am in year 3; first year, business did 200k in gross revenue, second year, $2.5m in revenue/$1m in profit and on pace to do $2.5-3m this year. My AGI last year was just under $500k.

The house we are looking at is $1.06m. Right now, I probably put have $30-50k liquid with another ~$300k invested. My business maintains a healthy cash position (I am 50% owner).

I’m very fortunate to have graduated from college with zero debt. My dad is quite well off and I’ve never “needed” for anything but he made sure I understood the value of a dollar growing up.

Initially, we were looking at houses in the $1.3-1.5 range but I wouldn’t want to carry PMI with a loan that big so it’s not an option to go sub 20% in that range.

Here are my options —

• I’d absolutely be able to stomach 5% down + PMI and hefty overpayments in the first year to hit 20% (quite confident I can do this) and remove PMI the first opportunity it makes sense. Not sure it matters, my wife and I have zero debt aside from 10-15k in student debt for her and our leased vehicles; both being paid by my companies but debt is in our names.

• Pull 20% from my business but that would be at a major cost as my partner would want to pull. Paying the $300-$500 PMI monthly is the opportunity cost I’m willing to pay to allow my business to continue to grow with our organic capital.

• Ask my dad to buy the house in cash and I take a mortgage to pay him back. This is what I’d prefer but I genuinely have zero clue how that would work with a bank.

I’m curious if anyone can shed some light on the process of buying a house in cash and getting a loan after, or putting sub 20% on a home, does that make it a less attractive offer if the only contingencies are in the disclosure and inspections?