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Parent giving down payment



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amother
OP


 

Post Mon, Sep 14 2020, 10:57 pm
Can you walk me through how this works? I know there's a maximum gift amount. Is there a way around that?
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Bluepink




 
 
    
 

Post Mon, Sep 14 2020, 11:11 pm
Max gift amount for mortgage purpose or for tax purposes? For tax purpose can’t give $10k or more per year but each gift giving person (say your mother and father) can give each giftee (you and dh) so total of $39,996 without paying taxes
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amother
Hotpink


 

Post Tue, Sep 15 2020, 2:22 am
Bluepink wrote:
Max gift amount for mortgage purpose or for tax purposes? For tax purpose can’t give $10k or more per year but each gift giving person (say your mother and father) can give each giftee (you and dh) so total of $39,996 without paying taxes


Its been awhile but I think in order to get around this the money cane straight from my parents account. It meant they had to get underwritten a little bit for the loan also but it avoided the tax issue.
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amother
Mint


 

Post Tue, Sep 15 2020, 2:57 am
Bluepink wrote:
Max gift amount for mortgage purpose or for tax purposes? For tax purpose can’t give $10k or more per year but each gift giving person (say your mother and father) can give each giftee (you and dh) so total of $39,996 without paying taxes

It is 15K.
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amother
OP


 

Post Tue, Sep 15 2020, 7:07 am
amother [ Hotpink ] wrote:
Its been awhile but I think in order to get around this the money cane straight from my parents account. It meant they had to get underwritten a little bit for the loan also but it avoided the tax issue.


Does this mean that they were a co-signer?
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amother
Hotpink


 

Post Tue, Sep 15 2020, 7:10 am
amother [ OP ] wrote:
Does this mean that they were a co-signer?


No. The lender allowed the money for down payment to come straight from their account but they were not cosigner. I'm not sure this is standard. We used an amazing broker and got a lot of things done that people said we never would.
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amother
Burlywood


 

Post Tue, Sep 15 2020, 7:13 am
If you get large cash payment toward house or close to the time you bought house then the bank will make the ‘giver’ sign that it is a permanent gift and not a loan.
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icedcoffee




 
 
    
 

Post Tue, Sep 15 2020, 8:06 am
There's actually a big misconception about gift tax - if it's more than $15k, you have to report it to the IRS but you do NOT have to pay taxes on it. You only have to pay taxes if you gift more than $11.4 million in your lifetime. The reason you report the $15k is so they can keep track of your progress towards that $11 million, but I assume most of us don't have to worry about ever hitting that (and if we do, we have tax lawyers who can advise us!).
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amother
Yellow


 

Post Tue, Sep 15 2020, 9:05 am
Lenders don't have a limit on the max dollar amount a parent could gift you with. There are however certain mortgage programs that would require the borrower to put between 1%-3% of their own funds into the deal.
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amother
Pearl


 

Post Tue, Sep 15 2020, 10:02 am
My inlaws gave us $. They wrote it out into 4 payments. One from fil to my husbands, one from my fil to me. One from my mil to my husband and one from my mil to me.
They had spoken to an accountant and that's what he said to do. Each check was within the limits allowed to gift untaxed
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