Did you get parental help to buy any houses you own?

[Anonymous]

No, we did not get any help from our parents. Bought a 1.1 million dollar home and put $200,000. I’m proud of us!

[Anonymous]

When I was 26, I moved back to DC and wanted to buy a house. I had recently graduated from law school, I had school debt, and I didn't have enough money for a down payment. My parents had a fully paid-off house. They agreed to put a HELOC on their house, and to lend me the money for my down payment. I paid every cent of closing costs, interest, and principal on the HELOC, and paid it back in full within 3 or 4 years. So, it was a wash from my parents' perspective, but gave me the capital needed to buy my first house. I have since bought more properties, and have done quite well. But that was definitely "parental help" that allowed me to buy my first house.

[Anonymous]

Anonymous wrote:Small gift of $1 million towards our $1.6 million starter home

Lol. “Small gift” of $1m and more than half the cost of the house. 😂

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes. Does a loan count? 1.8 M home, we have a loan of 800,000 at 2% to pay off to DH’s parents. They already told us it will just be forgiven when they pass if we are still paying it off. It very nice not to deal with a bank.

how much did you pay for the house? did you put any money in?
They gave you a $800k loan and no DP and it’s appreciated to 1.8m?

Yes should have included that is what we bought the house for. We put down 1 million, they loaned us the $800000 remainder.

You had 1m cash but your parents still gave you an 800k loan for the rest? I feel like there is more to this story. Trust funds or the like or another house they helped you with but you had massive appreciation. Very odd situation to have $1m cash for your first home. How old were you when you bought it?

[Anonymous]

I think my mom gave me $5k, which I used towards furniture.

[Anonymous]

Anonymous wrote:I don’t understand those who are just getting 1 million dollars towards a house. There are tax implications.

No there are not. You just need to send in a form.

[Anonymous]

Yes, absolutely. Thanks trust fund! We have a real estate portfolio worth about 10M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes. Does a loan count? 1.8 M home, we have a loan of 800,000 at 2% to pay off to DH’s parents. They already told us it will just be forgiven when they pass if we are still paying it off. It very nice not to deal with a bank.

how much did you pay for the house? did you put any money in?
They gave you a $800k loan and no DP and it’s appreciated to 1.8m?

Yes should have included that is what we bought the house for. We put down 1 million, they loaned us the $800000 remainder.

You had 1m cash but your parents still gave you an 800k loan for the rest? I feel like there is more to this story. Trust funds or the like or another house they helped you with but you had massive appreciation. Very odd situation to have $1m cash for your first home. How old were you when you bought it?

We are in our late thirties and this is actually our third house that we have owned. We have had great appreciation on previous homes and, yes we tapped into a trust fund to cover the one million down payment. We just didn’t want to pay completely in cash and used that money instead for investments. So we borrowed the remainder from family.

[Anonymous]

$30k bridge loan, which we paid back as soon as our other house sold. I’m grateful, I don’t think that we would have been able to deal with selling while we were living there. it also gave us time and space to do improvements that helped us get a good price. Thanks Mom & Dad!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes. Does a loan count? 1.8 M home, we have a loan of 800,000 at 2% to pay off to DH’s parents. They already told us it will just be forgiven when they pass if we are still paying it off. It very nice not to deal with a bank.

how much did you pay for the house? did you put any money in?
They gave you a $800k loan and no DP and it’s appreciated to 1.8m?

Yes should have included that is what we bought the house for. We put down 1 million, they loaned us the $800000 remainder.

You had 1m cash but your parents still gave you an 800k loan for the rest? I feel like there is more to this story. Trust funds or the like or another house they helped you with but you had massive appreciation. Very odd situation to have $1m cash for your first home. How old were you when you bought it?

We are in our late thirties and this is actually our third house that we have owned. We have had great appreciation on previous homes and, yes we tapped into a trust fund to cover the one million down payment. We just didn’t want to pay completely in cash and used that money instead for investments. So we borrowed the remainder from family.

Okay so in reality you’ve had 100 percent help on the purchase, not just the loan. It’s not something your salary is covering.

[Anonymous]

Anonymous wrote:I don’t understand those who are just getting 1 million dollars towards a house. There are tax implications.

I’d have to find the sheet for details but if you don’t want it to count against your estate limits you structure it as a loan with the required minimum interest (very low in 2021) and then forgive the loan (and unpaid interest) at the annual gift tax exemption (something like $72,000/yr from one couple to another right now)

[Anonymous]

Anonymous wrote:No, we did not get any help from our parents. Bought a 1.1 million dollar home and put $200,000. I’m proud of us!

Are you saying that you'd be less proud of your parents helped you? Why? What else should rich parents do with their money?

[Anonymous]

Anonymous wrote:When I was 26, I moved back to DC and wanted to buy a house. I had recently graduated from law school, I had school debt, and I didn't have enough money for a down payment. My parents had a fully paid-off house. They agreed to put a HELOC on their house, and to lend me the money for my down payment. I paid every cent of closing costs, interest, and principal on the HELOC, and paid it back in full within 3 or 4 years. So, it was a wash from my parents' perspective, but gave me the capital needed to buy my first house. I have since bought more properties, and have done quite well. But that was definitely "parental help" that allowed me to buy my first house.

When you applied to get your mortgage, did you lie and say the money in your account that you put towards a down payment was a gift? Or did you admit that it was a loan?

[Anonymous]

Yes, H's family gave us 20%. 2.3m, 1 home. I also inherited my grandmother's condo in Paris.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No, we did not get any help from our parents. Bought a 1.1 million dollar home and put $200,000. I’m proud of us!

Are you saying that you'd be less proud of your parents helped you? Why? What else should rich parents do with their money?

What is there to be proud of if your parents helped?
If they earned it themselves, they accomplished a difficult goal. If you’re parents give it to you, you didn’t have to do anything for it or put work or effort towards it.