Updated almost 9 years ago on . Most recent reply
Dad gifted me $150k Down Payment on House, can I pull equity?
Hello!
My brother and I just purchased our first home this past August 2016. Our parents gifted us $150k for the down payment on a $510k brand new track home in Tracy, CA.
The $150k gift from my dad was money he pulled out from his 401k (He's older than 59.5). I want to help my dad with putting his money to work for him for his retirement since a good chunk of it was to help buy this new house.
Is it possible or do you recommend doing a refi-cash out on our property so that we can use that on a down payment for a rental property out of state?
Any help or suggestions would be very much appreciated thank you!
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#1 Foreclosures Contributor
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
No. First, buying out of state, Midwest crap is Not for beginners. Secondly, but more importantly, your father wanted to give you some security, not have you borrow that back. Also, you have very little equity you can access, most HELICS lend up to 80% tops LTV, if you qualify for it.