Hi, my parents are loaning me money for a downpayment. How do I account for this? Will I have to pay taxes on it? I'm paying them back, so how does all of this work? Thanks.
Asked By Kelsey M | Portland, OR | 566 views | Buying | 2 years ago
These are referred to as "gift funds" - but it sounds like this is actually a loan from your parents. When you meet with a loan officer they will ask what loans you have out, and the lender will take into account the loans you already have (e.g. a car loan), this will factor in to how much a lender can get you approved for. If your parents are going to gift you the money, you want to put that into your bank account 3 months prior to buying a house, or you may need a letter from your parents stating that you are not required to pay it back - so the lender can allow you to use this money.
In most cases, you cannot easily get a loan for a downpayment unless you ask the lender ahead of time and the lender approves it based on the type of loan you are seeking. A loan means it needs to be paid back, your parents may need to "gift" you the funds vs "loan" you the funds. Ask your lender, they will tell you. Then its up to your parental relationship how this works.
In a hot market with limited inventory, buyers are always looking for a way to beat the competition. They want to make bids that stand out and find hidden gems before others on the market do. This competition is causing more people to search for off-market real estate listings. These might be properties that aren’t listed for sale just yet, or h
For buyers who value privacy, need to purchase quickly, or want non-traditional income sources, paying cash seem like an ideal way to purchase property with minimal disclosure. You can buy a home without a loan, but can you buy a house without proof of income?
While cash purchases remove the lender from the equation, they don't erase all verifi