Lewis Center, OH · Member since 2016 · 7 posts · 0 votes
I have a signed purchase contract for my first 4 plex. I will be going in on the deal with a few other family members as i don't have the cash for the 25% down-payment that is required.
Is it possible/legal for them to transfer their portion of the downpayment into my account so i can be the sole person on the mortgage? This way only 1 of us has to be on the mortgage.
Any advice or ideas on possible workarounds would be appreciated. Thanks.
Real Estate Investor · Seattle, WA · Member since 2016 · 30 posts · 12 votes
9y
Not tax advice (ask a tax lawyer/CPA), but here is my experience: You can receive as a gift up to $14,000 from each individual tax free, (I'd this this when purchasing my first house). The mortgage company will likely want to see letters statement that XYZ relative gave you $xx,000 as a gift and they are not expecting repayment. Now, technically its sketchy, since I'm assuming your family members will expect repayment, either as equity or cash on sale, so your not really receiving a gift. IF they want a signed letter stating that AND your relatives expect repayment, you just gotta decide whether your comfortable lying to your mortgage company. Just my .02$.
Lewis Center, OH · Member since 2016 · 7 posts · 0 votes
9y
Thank you. That is kind of what I figured. Technically I would be able to receive to the "gifts" but then there is the gray area on if myself and the family members feel ok about lying about them expecting anything in return.