March 14, 200521 yr For those who have been down the road before... It looks like my in-laws might be helping us with the down payment to buy a house. I have heard that you are not allowed to get a loan for a down payment (which it wouldn't be) but you have to prove where you get money from if large sums of money show up in your accounts. My question is how do you "hide" the money? Is there a way around it? I have learned a few things about home buying I didn't know, but do people have other tips in general? This will be our first place.
March 14, 200521 yr QUOTE(southsider2k5 @ Mar 14, 2005 -> 10:43 AM) For those who have been down the road before... It looks like my in-laws might be helping us with the down payment to buy a house. I have heard that you are not allowed to get a loan for a down payment (which it wouldn't be) but you have to prove where you get money from if large sums of money show up in your accounts. My question is how do you "hide" the money? Is there a way around it? I have learned a few things about home buying I didn't know, but do people have other tips in general? This will be our first place. No way to "hide" it now. This is the internet, Mike.
March 14, 200521 yr I can ask Brian tonight what he did - his dad gave him some money towards his downpayment (which Brian paid back fairly quickly).
March 14, 200521 yr IIRC, I reported it as a gift, along with a notorized statement. Spring, a great time to look at houses, I wonder why :rolly
March 14, 200521 yr QUOTE(southsider2k5 @ Mar 14, 2005 -> 04:43 PM) For those who have been down the road before... It looks like my in-laws might be helping us with the down payment to buy a house. I have heard that you are not allowed to get a loan for a down payment (which it wouldn't be) but you have to prove where you get money from if large sums of money show up in your accounts. My question is how do you "hide" the money? Is there a way around it? I have learned a few things about home buying I didn't know, but do people have other tips in general? This will be our first place. Ask for it in cash, show up with it in a duffle bag.
March 14, 200521 yr QUOTE(Texsox @ Mar 14, 2005 -> 11:56 AM) IIRC, I reported it as a gift, along with a notorized statement. Spring, a great time to look at houses, I wonder why :rolly Tex is correct. You need a certified check I believe, and the notarized statement.
March 14, 200521 yr Author QUOTE(Texsox @ Mar 14, 2005 -> 10:56 AM) IIRC, I reported it as a gift, along with a notorized statement. Spring, a great time to look at houses, I wonder why :rolly Did you claim it on your taxes as well then?
March 14, 200521 yr You call it a "gift" and have it tracked as one, as mentioned above. That's how we did our house.
March 14, 200521 yr We just closed on a house two weeks ago. Other than the fact that both the seller agent and our agent were both incompetent morons, I guess the experience was only about as painful as your typical root canal... performed with rusty instruments.... by a drunk dentist... You are correct in needing to document the source of a gift. We were in the same boat and my folks were going to lend us about $20K for a downpayment. We realized that the best way for us to avoid that was to go with an 80/20 loan in which the second loan was an equity line. Then we could do the transaction with nothing down other than standard closing costs, and then after the fact use the loan from my parents to pay off/down the equity line without having to jump through the documentation hoops. Also. most lenders limit the percentage of the purchase price that can be covered with a personal gift. Jason will have more info on this, but I think our lender would have limited it to 5%. In the end, when we were running the numbers, we realized that we'd be a lot better off on a monthly basis if we used that money to pay down our high interest debt. So that's what we are doing. If we put a $20K gift toward repaying the equity line, it would cut our monthly mortgage payment by about $50. But if we used it to pay off $20K in debt, we'll save like $300 a month in payments. So it was a no-brainer, and my folks still consider their loan a means for us to buy the house, which it very much is. Hope that helps.
March 14, 200521 yr Author And I just realized why Tex said what he did... . For those who do not know the big news, check the blog http://boringtheworld.blogspot.com/2005/03...te-finally.html
March 14, 200521 yr QUOTE(southsider2k5 @ Mar 14, 2005 -> 11:37 AM) And I just realized why Tex said what he did... . For those who do not know the big news, check the blog http://boringtheworld.blogspot.com/2005/03...te-finally.html Oh s***! Congratulations!
March 14, 200521 yr I'm guessing that is Tex's Blog??? Very cool news there! Congrats! Nope, SS is Mike, right? Heck, I knew that. Whoever the heck of you is having a kid! CONGRATS!!! LOL!!! Edited March 14, 200521 yr by Kid Gleason
March 14, 200521 yr QUOTE(Kid Gleason @ Mar 14, 2005 -> 11:55 AM) I'm guessing that is Tex's Blog??? Very cool news there! Congrats! Nope, SS is Mike, right? Heck, I knew that. Whoever the heck of you is having a kid! CONGRATS!!! LOL!!! SS is Mike. He's having a kid.
March 14, 200521 yr Author QUOTE(Kid Gleason @ Mar 14, 2005 -> 11:55 AM) I'm guessing that is Tex's Blog??? Very cool news there! Congrats! Nope, SS is Mike, right? Heck, I knew that. Whoever the heck of you is having a kid! CONGRATS!!! LOL!!! Nope that's my blog. There were some people (Tex included) who knew what was going on before everyone else did, because there were some nervous times before we got the ultrasound results. We didn't want to tell too many people before we knew everything was OK.
March 14, 200521 yr QUOTE(southsider2k5 @ Mar 14, 2005 -> 12:00 PM) Nope that's my blog. There were some people (Tex included) who knew what was going on before everyone else did, because there were some nervous times before we got the ultrasound results. We didn't want to tell too many people before we knew everything was OK. Well then, a more personal "CONGRATS" then!!! Glad to know things turned out O.K. so that you could share the info with us!!! Kids rule man, and they make life a whole lot better than it was before they wandered along!
March 14, 200521 yr QUOTE(southsider2k5 @ Mar 14, 2005 -> 11:20 AM) Did you claim it on your taxes as well then? Again, IIRC it was below the reporting threshhold. I'm not nearly smart enough to do my own taxes beyond, please sign here and give me a check.
March 14, 200521 yr Author QUOTE(Texsox @ Mar 14, 2005 -> 12:20 PM) Again, IIRC it was below the reporting threshhold. I'm not nearly smart enough to do my own taxes beyond, please sign here and give me a check. That's why I buy "Tax Cut" from HR Block every year. Thanks though.
March 14, 200521 yr QUOTE(southsider2k5 @ Mar 14, 2005 -> 11:37 AM) And I just realized why Tex said what he did... . For those who do not know the big news, check the blog http://boringtheworld.blogspot.com/2005/03...te-finally.html I didn't want to out you in case you were still being quiet about it
March 14, 200521 yr QUOTE(Texsox @ Mar 14, 2005 -> 12:23 PM) I didn't want to out you in case you were still being quiet about it More news?
March 14, 200521 yr QUOTE(mreye @ Mar 14, 2005 -> 12:41 PM) More news? grudge baby, someone had it in for him . . . joking, just joking, pleeeeeeeease don't ban me
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