The tightened lending standards are keeping a lot of young professionals on the sidelines in home buying today. That’s where more parents are stepping in!
More parents are taking on the role as mortgage lenders to help their kids take advantage of low home prices and record-low mortgage rates. In fact, one in three first-time home buyers either received a gift or loan from their families for a home purchase made in 2011, according to National Association of REALTORS®’ research.
But parents who enter into a gift-giver or mortgage lender role need to make sure they follow some tax guidelines. We coordinate family like this with CPA’s , attorneys, etc!
For one, the federal government has rules on how much you’re allowed to gift. For 2012, individuals can give up to $13,000 tax free in one year without having to pay gift taxes. Married couples can give up to $26,000 a year.
More information at source: “Become Your Kid’s Mortgage Lender,” Fortune (February 2012)