Anonymous
Post 03/25/2013 15:04     Subject: Question for those of you whose parents helped with a home purchase
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!


+1 I am so happy to be self-sufficient!
Anonymous
Post 03/25/2013 14:59     Subject: Question for those of you whose parents helped with a home purchase
Let them gift you the maximum account so you don't have to pay any taxes and then work out your own loan agreement and repayment directly with your parents. It is less complicated if you just put that money into your accounts a few months before you apply for a mortgage so you have a paper trail of the savings.

Anonymous
Post 03/25/2013 14:58     Subject: Question for those of you whose parents helped with a home purchase
When I purchased my first apartment in 2001 my mother gave me $5,000. I did not need the money (I outearned her by a lot and had enough savings) but she wanted to do and I did not refuse it. Some families just beleive in helping each other. I hope to be able to write my children a bigger check and I hope that they are able to pay in forward into the next generation.
Anonymous
Post 03/25/2013 14:50     Subject: Question for those of you whose parents helped with a home purchase
Anonymous wrote:Not only do you need to consider gift tax implications, but talk to your mortgage lender. We had to have my parents sign a letter stating it was a gift, even though we did pay them back.


Same here. My parents gifted both DH and me the max for two years and signed the letter. There is no loan/contract drawn up. We pay them back $800/month for a period of 10 years.

In case anyone is wondering, no, I didn't ask my parents. They offered, as had been done to them by their parents.
Anonymous
Post 03/25/2013 14:45     Subject: Question for those of you whose parents helped with a home purchase
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:My dad gave us 50% of the downpayment as a gift, we weren't expected to repay it. And FYI to pp, he is not wealthy, just a good saver and wants to help his children out. I hope to do the same for my kids.


considering you didn't earn it i doubt you will save up and will waste it all


Haters gonna hate.



Hand outs have their own fate.
Anonymous
Post 03/25/2013 14:39     Subject: Question for those of you whose parents helped with a home purchase
Anonymous wrote:
Anonymous wrote:My dad gave us 50% of the downpayment as a gift, we weren't expected to repay it. And FYI to pp, he is not wealthy, just a good saver and wants to help his children out. I hope to do the same for my kids.


considering you didn't earn it i doubt you will save up and will waste it all


Haters gonna hate.
Anonymous
Post 03/25/2013 14:36     Subject: Question for those of you whose parents helped with a home purchase
Anonymous wrote:My dad gave us 50% of the downpayment as a gift, we weren't expected to repay it. And FYI to pp, he is not wealthy, just a good saver and wants to help his children out. I hope to do the same for my kids.


considering you didn't earn it i doubt you will save up and will waste it all
Anonymous
Post 03/25/2013 14:34     Subject: Question for those of you whose parents helped with a home purchase
Anonymous wrote:In 2004, my parents gave us money for a down payment (we had enough for 20% but my parents' gift allowed us to have 35% equity in the house, thereby reducing our monthly mortgage payments). They just wrote me a check and I deposited it. No letter to the lender, etc. Maybe in 2004 (pre-collapse) they were more lax with the requirements.

As long as the money is in your account for 60 days, it is considered "yours". No gift letter is needed.
For a conventional loan, if you're only putting down 5% (which is allowed up to $417,000), you are not allowed to use gift funds; the money has to be solely yours. If the gift is more than 20% of the sales price, then you don't have to put any of your own money down. Any gift of $13,000 or more should be reported to the IRS and you will need anyone "gifting" you funds to sign a letter stating that you don't need to pay them back.
Anonymous
Post 03/25/2013 14:31     Subject: Question for those of you whose parents helped with a home purchase
Handouts rarely have a good out come.
Anonymous
Post 03/25/2013 14:23     Subject: Question for those of you whose parents helped with a home purchase
My dad gave us 50% of the downpayment as a gift, we weren't expected to repay it. And FYI to pp, he is not wealthy, just a good saver and wants to help his children out. I hope to do the same for my kids.
Anonymous
Post 03/25/2013 14:10     Subject: Question for those of you whose parents helped with a home purchase
In 2004, my parents gave us money for a down payment (we had enough for 20% but my parents' gift allowed us to have 35% equity in the house, thereby reducing our monthly mortgage payments). They just wrote me a check and I deposited it. No letter to the lender, etc. Maybe in 2004 (pre-collapse) they were more lax with the requirements.
Anonymous
Post 03/25/2013 14:10     Subject: Question for those of you whose parents helped with a home purchase
When I read stories about families helping grown children with down payments, tuition, vacations, etc... I am secretly jealous. I definitely had a generous mother who made sure I didn't have undergrad or bus school loans but she is in no way in a position to help with our DC's tuition or house down payment; nor would she. That said, I am praying that I raise responsible children who value money but my DH and I will do everything we can to help them if we can. I don't begrudge anyone getting help from their parents; that's how you extend generational wealth IMO. Especially if, as the recipient, you understand and appreciate the "hand up" you've been given.
Anonymous
Post 03/25/2013 14:08     Subject: Question for those of you whose parents helped with a home purchase
I got a few thousand to buy my first home 20 years ago. The lender required a notarized letter from my parents confirming that is was a gift with no repayment required or expected.

This was done for two reasons: first, the lender wanted a year of bank statements and they wanted an explanation to go with the influx of cash shortly before the purchase. Second, they want assurance that I didn't have to pay back the money since this would be like having another loan (like a car loan) that would affect my ability to pay the mortgage.

The closing went just fine and I paid back the money over three years. No strings.
Anonymous
Post 03/25/2013 13:57     Subject: Question for those of you whose parents helped with a home purchase
Not only do you need to consider gift tax implications, but talk to your mortgage lender. We had to have my parents sign a letter stating it was a gift, even though we did pay them back.
Anonymous
Post 03/25/2013 13:53     Subject: Question for those of you whose parents helped with a home purchase
Anonymous wrote:
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!


Try asking a tax pro but I'm pretty sure it's true. They can each give each person $14k/year (since there are two of them, $28k total). Ignore the bitter posters - I think it's a wonderful thing when parents are voluntarily generous to their children, as long as the children are respectfully and appropriately appreciative.