Question for those of you whose parents helped with a home purchase

[Anonymous]

Anonymous wrote:

Anonymous wrote:It must be nice to have rich folks.

Yes, it is.

Yeah, but that feeling of accomplishment of buying your own house...I wouldn't want to miss out on that.

[Anonymous]

does grand mommy also pay for the kids college

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It must be nice to have rich folks.

Yes, it is.

Yeah, but that feeling of accomplishment of buying your own house...I wouldn't want to miss out on that.

I'm the PP, and bought my own house. It's still nice to have wealthy family to take nice vacations and such with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The strings go on forever.

Sorry that'd be the case in your family. Wasn't in mine.

Oh, but it one sense it is. In the "no strings attached" way maybe not but in the "still clinging to your momma's apron strings" way... definitely.

Her help has allowed me and my husband to pursue careers we love, rather than wear golden handcuffs, and to have a wonderful and safe home for our children. We are blessed and appreciate it! If making nasty comments out of jealousy or lack of understanding of how a person can be selfless makes you feel better about your own situation, have at it! Doesn't affect me at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The strings go on forever.

Sorry that'd be the case in your family. Wasn't in mine.

Oh, but it one sense it is. In the "no strings attached" way maybe not but in the "still clinging to your momma's apron strings" way... definitely.

Her help has allowed me and my husband to pursue careers we love, rather than wear golden handcuffs, and to have a wonderful and safe home for our children. We are blessed and appreciate it! If making nasty comments out of jealousy or lack of understanding of how a person can be selfless makes you feel better about your own situation, have at it! Doesn't affect me at all.

Cool! I have those things and I got them on my own. I'm blessed and appreciate it as well!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The strings go on forever.

Sorry that'd be the case in your family. Wasn't in mine.

Oh, but it one sense it is. In the "no strings attached" way maybe not but in the "still clinging to your momma's apron strings" way... definitely.

Her help has allowed me and my husband to pursue careers we love, rather than wear golden handcuffs, and to have a wonderful and safe home for our children. We are blessed and appreciate it! If making nasty comments out of jealousy or lack of understanding of how a person can be selfless makes you feel better about your own situation, have at it! Doesn't affect me at all.

My in-laws lent/gave us money to buy our first house. We did the same for our kids. Also made sure kids weren't left with student loans. If the family has the money, it's really very sensible - it will likely save on estate tax ultimately. As for strings, I don't see that was a problem in either case, though I guess it's always a possibility.

[Anonymous]

Anonymous wrote:The gift limit this year is $14,000. So your FIL could give you and your spouse each $14,000 and your MIL could do the same for a total of $56,000. That is if you want to consider the money a gift and not a loan. If it is a true loan, instead of a gift, with a repayment schedule, then the rules change and your lender might not consider it as true down payment.

I would not worry about this limit. Gifts that exceed the limit count against the lifetime exclusion, which is over $5 million ($10 million for married couples). so unless you are extremely wealthy the gift limit is irrelevant.

[Anonymous]

We are doing this. Google "intrafamily loan." If it is a loan, then you have to treat it like an actual loan, including interest, or there could be negative repercussions with the IRS for your in laws). You should have a loan document (promissory note) drawn up and they should charge interest. The minimum interest rate and loan term are specified by the Applicable Federal Rate set by the IRS monthly. These rates are generally lower than what you would get from a bank. But if you DONT charge interest on the loan, the IRS will consider the foregone interest as income to your in laws, and will tax them on that income. The loan should look as much like a bank loan as possible, including being secured with a lien on your house.

There is a web-based service that says it will take care of the paperwork for you: http://www.nationalfamilymortgage.com

What we did was structure a 9 year loan at the minimum interest rate required, repayable in a balloon repayment at the end of 9 years. If we sell before 9 years we have to repay the mortgage and all the interest accelerated. We did it this way because my relative had a lump-sum they wanted to give us, so this was the way we could guarantee that they get paid back the right amount.

Much easier if they just gift you the downpayment!!

[Anonymous]

Do the amount allowable to under the gift tax, 56,000. If they were planning on giving more have them give it to you after jan 1. That way no gift tax or estate liability

[Anonymous]

Anonymous wrote:We are doing this. Google "intrafamily loan." If it is a loan, then you have to treat it like an actual loan, including interest, or there could be negative repercussions with the IRS for your in laws). You should have a loan document (promissory note) drawn up and they should charge interest. The minimum interest rate and loan term are specified by the Applicable Federal Rate set by the IRS monthly. These rates are generally lower than what you would get from a bank. But if you DONT charge interest on the loan, the IRS will consider the foregone interest as income to your in laws, and will tax them on that income. The loan should look as much like a bank loan as possible, including being secured with a lien on your house.

There is a web-based service that says it will take care of the paperwork for you: http://www.nationalfamilymortgage.com

What we did was structure a 9 year loan at the minimum interest rate required, repayable in a balloon repayment at the end of 9 years. If we sell before 9 years we have to repay the mortgage and all the interest accelerated. We did it this way because my relative had a lump-sum they wanted to give us, so this was the way we could guarantee that they get paid back the right amount.

Much easier if they just gift you the downpayment!!

To clarify, the loan is structured so that interest and principal are due in a balloon payment. We don't have to make any payments in the interim.

[Anonymous]

who the hell loans family money?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The strings go on forever.

Sorry that'd be the case in your family. Wasn't in mine.

Oh, but it one sense it is. In the "no strings attached" way maybe not but in the "still clinging to your momma's apron strings" way... definitely.

Her help has allowed me and my husband to pursue careers we love, rather than wear golden handcuffs, and to have a wonderful and safe home for our children. We are blessed and appreciate it! If making nasty comments out of jealousy or lack of understanding of how a person can be selfless makes you feel better about your own situation, have at it! Doesn't affect me at all.

Cool! I have those things and I got them on my own. I'm blessed and appreciate it as well!

Maybe you should have spent some of that hard work learning to be kind instead of going after the $$.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The strings go on forever.

Sorry that'd be the case in your family. Wasn't in mine.

Oh, but it one sense it is. In the "no strings attached" way maybe not but in the "still clinging to your momma's apron strings" way... definitely.

Her help has allowed me and my husband to pursue careers we love, rather than wear golden handcuffs, and to have a wonderful and safe home for our children. We are blessed and appreciate it! If making nasty comments out of jealousy or lack of understanding of how a person can be selfless makes you feel better about your own situation, have at it! Doesn't affect me at all.

Cool! I have those things and I got them on my own. I'm blessed and appreciate it as well!

I don't know what 'things you got on your own' but I get it, you're trying to be snarky and prove your superiority. It was a smart financial decision for her and made life easier for us. I guess if we made her live in the basement since we took all her money or quit our jobs and played croquet all day, I could sort of see the resentment, but we both work hard. And got family help, as did many people on this thread - because it was offered to us. Our kids' college will be paid for as well. As long as they appreciate that and work to the best of their ability, you imply they should feel guilty. I disagree.

[Anonymous]

Anonymous wrote:Do the amount allowable to under the gift tax, 56,000. If they were planning on giving more have them give it to you after jan 1. That way no gift tax or estate liability

OP here,

For all the nasty people out there, just go away. I'm happy that you were able to buy your own outrageously expensive (compared to other areas) house all on your own but some of us can't. DH comes from a culture where helping one's children out financially - to buy a house, pay for advanced degrees, etc. is the norm. His grandfather gifted his mother a plot of land and $$ to build a house when she and FIL got married so they want to do the same for us.

For those of you who have been helpful, thank you! I was just looking some of these things up and it looks like ILs can gift each person in my family a total of $28k without incurring a gift tax. But to the pp who said that as long as it's under the lifetime max (5 mil) it's ok? Is this true? I mean, do you know this as a fact? Our gift will be WELL under that max. Thanks again!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The strings go on forever.

Sorry that'd be the case in your family. Wasn't in mine.

Oh, but it one sense it is. In the "no strings attached" way maybe not but in the "still clinging to your momma's apron strings" way... definitely.

Her help has allowed me and my husband to pursue careers we love, rather than wear golden handcuffs, and to have a wonderful and safe home for our children. We are blessed and appreciate it! If making nasty comments out of jealousy or lack of understanding of how a person can be selfless makes you feel better about your own situation, have at it! Doesn't affect me at all.

Cool! I have those things and I got them on my own. I'm blessed and appreciate it as well!

Maybe you should have spent some of that hard work learning to be kind instead of going after the $$.

Amen! - pp who posted about my late mother's help. This person feels some kind of urge to prove her superiority, I guess?