Loan from parent?
I am getting a loan ("gift") from my mother towards a house. The mortgage is in my bfs name. We are common law, but not technically married. Can my mother give the gift to him??
It is technically a loan, but it is being given as a gift so I can pay a downpayment on a home.
Sorry for the confusion.
We are getting married this summer. ty.
- 1 decade agoFavorite Answer
Hi, When I bought my house with an FHA loan I remember doing this. FHA was very strict about where the downpayment money was coming from. My Mom gave me a $2000 loan, which had to be written as a gift towards the house - she had to sign a paper stating such.
I believe the homebuyer can accept a gift from anyone like this.
- Barb GLv 51 decade ago
If the house doesn't have your name on its title, have your boyfriend and mother enter into a loan agreement. Normally, it's called a private mortgage, and goes on your title just like any other mortgage. However, the bank probably won't allow it. Why is your mother loaning you the downpayment for a house that won't be registered in your name? Think it through.
- The ScorpionLv 61 decade ago
You really need to get your words right. A gift and a loan are polar opposites legally. So first you need to define exactly what it is you are getting. You SHOULD NOT get involved in co-opting payments on a house with someone you aren't married to. If you two can't commit to eachother, why would you commit your financial life in this way? She can give a gift to whoever she wants.
- Anonymous1 decade ago
If it's a gift then there is no paperwork or legal documents so why would it matter?
If it's a gift she can just as easily give it to your bf or a homeless man on the street as she could hand it to you. Write a cheque or hand over the cash and that's all there is to it.
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- 1 decade ago
I wouldn't put this money into the house unless your name is legally on the deed in a commensurate amount (%).
1. its a great tax write off
2. if something happens, you have zero repercussions.
if you arent on the deed, offer to pay rent until you are married, that is more than your fair share- and the right thing to do IMO.