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Started By
Message
Any positives/pitfalls of taking home loan from family?
Posted on 8/18/13 at 9:29 am
Posted on 8/18/13 at 9:29 am
Instead of getting a mortgage through a bank, I have been offered the possibility of a family member paying cash for a house, and then u would set up the mortgage with said family member. Interest rate will be standard daily rate, no down payment. Any tax implications (I believe you can still deduct interest but not principal)? Any other positives or pitfalls the money board can think about?
6
Posted on 8/18/13 at 9:32 am to The Hamburglar
Don't mix family and money
Posted on 8/18/13 at 10:31 am to The Hamburglar
it won't show up on your credit report which could hurt you
Posted on 8/18/13 at 10:54 am to The Hamburglar
I would speak to a tax attorney regarding the interest deduction.
As far as loan, I know a couple people who have done this, where the parents are the bank and they get a % return on their money, and when they kick the bucket the debt is absolved.
Just have everything notarized so at no point there is any gray area regarding the terms
As far as loan, I know a couple people who have done this, where the parents are the bank and they get a % return on their money, and when they kick the bucket the debt is absolved.
Just have everything notarized so at no point there is any gray area regarding the terms
Posted on 8/18/13 at 3:00 pm to The Hamburglar
low closing costs
no credit score help though, although I think it could be reported if you figure out how to do it.
Tax implications are no different at all.
Think of it like a retirement fund for yourself if you stand to inherit down the road.
Keeps all of the money in the family.
safe secured investment for them, better than the markets
I think it is a great idea.
I've done it twice.
no credit score help though, although I think it could be reported if you figure out how to do it.
Tax implications are no different at all.
Think of it like a retirement fund for yourself if you stand to inherit down the road.
Keeps all of the money in the family.
safe secured investment for them, better than the markets
I think it is a great idea.
I've done it twice.
This post was edited on 8/18/13 at 3:01 pm
Posted on 8/18/13 at 3:22 pm to The Hamburglar
There probably won't be any major problems as long as you can make your payments on time.....
Posted on 8/18/13 at 9:16 pm to The Hamburglar
quote:
Don't mix family and money
THIS!
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