Most people in their twenties are starting to get out into the world and pursue jobs, careers, and the excitement of buying their first home. Because of the fact that millennials are just starting out, they may have the job to pay their mortgage loan back, but they may not have the hefty down payment required to purchase the home. Buying a home for the first can be stressful and confusing but in the end, it is an extremely rewarding accomplishment. Especially around the holidays, parents may be thinking this is the perfect gift to give their child who is ready to make a huge financial investment. Before you do this, there are some things you should be aware of.
- Make sure the bank knows that the loan amount is, in fact, a gift. If you expect the recipient to pay the down payment back to you, it will be included in the loan amount and they could end up being approved for less than the amount they need.
- It is in your best interest to write a gift letter so the bank knows that you agree that it is a gift and does not need to be paid back.
- Per current guidelines set by the IRS, any amount of money given over $14,000 must face a tax bill.
This is one of many tricky situations that our real estate professionals here at Bardell Real Estate can help you through. We are eager to help you and give your our honest opinion about any situation when it comes to real estate in Florida. Please contact our office today for any questions you have!