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Answers (7)
- Mark Nehs, Wisconsin, "WI Mortgage Lender"
- Contributions:250
Yes consult accountant and attorney. I think it should work fine (I have done it). Ask about both parents gifting to both of you? I would further research the gift angle to potentially avoid PMI. After that get back with your mortgage professional and figure out the best plan.
- Russell Smith, "RussellMortgage"
- Contributions:109
Absolutely talk to your CPA about the gift limits and how it pertains to this purchase, their cost basis, etc. As far as USDA loans, a family transaction is allowed and it is a 100% loan. There are other things that need to be checked out by lenders when it is a family transaction. If there is a mortgage, the history will need to be verified so that it is not a bailout situation. Lenders worry about that on any family transaction. The appraisal will be reviewed potentially by a field review just to make sure on the value but being under the value is certainly not a problem. USDA is a great way to go though for low pmi and payments compared to an FHA loan.
- Wes Black
- Contributions:509
It is indeed attorney and CPA time. Sounds like you have a great deal and well meaning parents.
- wysickle
- Contributions:3
They purchased it end of July 2011. So only 6 months.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
Good solid advice given here, talk to your parents accountant first. And then work with an attorney.
Re capital gains, how long have they owned the home?
Re capital gains, how long have they owned the home?
- Cindy Quinton, "Cindy Quinton"
- Contributions:1322
I would seek tax advice (I've just never seen anyone claim to be a tax advisor on the zillow boards). I just happened to be reading some stuff about the gifts people can give each other. One interesting article was here: http://www.axa-equitable.com/plan/estate/gift-tax.html
And there is a lot of information on the IRS site: http://www.irs.gov/
Hopefully some mortgage folks will come along and answer questions about USDA loans vs conventional vs FHA. Good luck!
And there is a lot of information on the IRS site: http://www.irs.gov/
Hopefully some mortgage folks will come along and answer questions about USDA loans vs conventional vs FHA. Good luck!
- Rita A. Walker, "Rita Walker"
- Contributions:277
Sounds to me that you should be speaking with your accountant and/or your attorney.
How to purchase home from parents under value?
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