Buying A House For Family Member

Buying a house for a family member in California and need to know the best way to structure the loan.

As it stands I was already preapproved and we needed to get a house fast so I offered as I have a much better credit score. They accepted the offer but now I’m realizing it might be more complicated tax-wise than I thought.

The family member has enough money for the down payment and closing costs and I want them to pay it (and they want to). I was only helping out with getting approved for a better rate as well as helping out a bit with monthly payments, but I fully planned on this being their home and even transferring the title over later if it’s not too complicated.

Is this the correct way of doing it? Is it even possible to have a family member pay the closing costs/down payment? Or should I just pay it all and they just gift me money outside of the loan separately?

From what I found it can be very complicated to have a family member pay the closing costs and down payment and it seems it needs to be disclosed on the loan prior to that happening, but I’m supposed to at least put earnest money in today or tomorrow so I’m realizing I’m a bit more unprepared for this than I thought.

Basically TLDR:

Can my immediate family member gift me $35,000 without any tax implications? Or is it better to try to have them directly pay the closing costs/down payment?

submitted by /u/JuniorJuiced
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Buying a house for a family member in California and need to know the best way to structure the loan. As it stands I was already preapproved and we needed to get a house fast so I offered as I have a much better credit score. They accepted the offer but now I’m realizing it might be more complicated tax-wise than I thought. The family member has enough money for the down payment and closing costs and I want them to pay it (and they want to). I was only helping out with getting approved for a better rate as well as helping out a bit with monthly payments, but I fully planned on this being their home and even transferring the title over later if it’s not too complicated. Is this the correct way of doing it? Is it even possible to have a family member pay the closing costs/down payment? Or should I just pay it all and they just gift me money outside of the loan separately? From what I found it can be very complicated to have a family member pay the closing costs and down payment and it seems it needs to be disclosed on the loan prior to that happening, but I’m supposed to at least put earnest money in today or tomorrow so I’m realizing I’m a bit more unprepared for this than I thought. Basically TLDR: Can my immediate family member gift me $35,000 without any tax implications? Or is it better to try to have them directly pay the closing costs/down payment? submitted by /u/JuniorJuiced [link] [comments]

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