Parents paying down payment

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My parents are going to help my brother and sister in law with a large down payment for my brother’s first home. They are going to pay/gift $100,000. My parents are asking me and I haven’t a clue so I come to you guys. Can my father just write a check to my brother or should it be a transfer? Any and all help appreciated

@Tou Yang   I don't know where your parents or siblings are.  In Canada, the money for a down payment can be a gift; but I believe in the US, it can't.  It has to be in the buyer's bank account for a set amount of time.  So they could give it to them and then they can wait a year (I don't know the time limit-I think it is 6 months) and then buy a home.

If your Dad gives them a check for $100,000 all at once, there will be gift taxes owed. I think the limit is $15,000 per person. Potentially, your Dad could give Brother and Sister In law, each $15k, then Mom may be able to do so as well. Total would be $60k. If they do it once in 2019, they can then do it again in 2020 to hit the $100k. You should do some research to confirm numbers and feasibility.

Also, lenders will do a lookback across bank statements fore 2-3 months to see if there were any large deposits recently. They will question those and ask for explanations. If your down payment was a gift and not in the account for some period of time, they will ask the parents to fill out a form stating such.

My best advice would be to get the gift in smaller chunks to avoid taxes, and leave it in the account for several months before actually buying the property.