Post by erniebufflo on Feb 27, 2013 11:34:35 GMT -5
They accepted another offer, but it's contingent on another house selling. So now we gotta get a lender to give us something firm so we can put in an offer and get this house!
Post by erniebufflo on Feb 27, 2013 12:56:09 GMT -5
Just found out hubby's parents are going to lend us a significant chunk of change for the down payment. We have enough for 10% down even if we pay full asking price. Surely we can get this worked out.
Ahhh good luck! How long does the other buyer have to sell their house? Has their offer been accepted in writing or just verbal until the house sells?
Not sure, our agent just said they'd accepted the offer, but since it is contingent on another house selling, our offer would be able to negate the other offer.
Just found out hubby's parents are going to lend us a significant chunk of change for the down payment. We have enough for 10% down even if we pay full asking price. Surely we can get this worked out.
You might already know this, but, when talking to a lender, phrase it as a gift from you ILs, even if it is a loan. Good luck!
Just found out hubby's parents are going to lend us a significant chunk of change for the down payment. We have enough for 10% down even if we pay full asking price. Surely we can get this worked out.
You might already know this, but, when talking to a lender, phrase it as a gift from you ILs, even if it is a loan. Good luck!
Would calling it a gift mean we'd have to pay taxes on it?
Post by monkeybabe on Feb 27, 2013 13:22:26 GMT -5
Publication 525 from the U.S. Internal Revenue Service, "Taxable and Non-Taxable Income," states that money received as a gift "is not included in your income."
There's a gift tax for the person giving the money if it's over 14k, I believe this year, and as a couple that would be 28k.
You might already know this, but, when talking to a lender, phrase it as a gift from you ILs, even if it is a loan. Good luck!
Would calling it a gift mean we'd have to pay taxes on it?
No. Your parents will likely have to write a letter to your lender stating it is a gift. They do this because they don't want your realtor paying you off or anything (this is what our lender said, lol). My IL's are giving us a significant wedding gift for the house and our lender flat out told us to not accept the money till we close.
ETA: Likewise, I got a $600 check from my grandma right before Christmas, she died on Christmas eve. The lender is making a big stink of this and I'm now trying to get the POA to write us a letter. They don't want any "random" money showing up in your account.
ETA2: yeah, I guess it does have to do with taxes too. But our lender said something about realtors making "deals" with buyers and such and giving them money upfront so they have to verify all random money and stuff. I don't remember the exact wording but he says it happens.
ETA3: I just asked my H why the lender said not to accept the money till after and he said because then the lender would have to go through his parents bank statements to make sure they aren't being paid off, lol. Maybe it varies state to state? But, the lender was very honest and said don't put in any money into your bank account that is hard to explain or that will involve others. Sometimes I laugh at how stupid the rules are and then how lenient things are too. Like, oh, you can get a huge loan that you can't even afford (not you - just people in general) but you can't cash a $50 check without us questioning you!
Publication 525 from the U.S. Internal Revenue Service, "Taxable and Non-Taxable Income," states that money received as a gift "is not included in your income."
There's a gift tax for the person giving the money if it's over 14k, I believe this year, and as a couple that would be 28k.
Apparently it's Fannie May guidelines killing us. And since everyone wants to be able to sell our loan, they follow those guidelines. It just sucks that we look bad on paper. You'd think a doc making over $100k with good credit would be able to get a loan, but I guess not.
Do you know how the guidelines work as far as the short sale no longer being a problem?
Apparently 4 years is the magic cutoff. Dammit.
That must be so frustrating. I can kind of feel you, because I had my credit screwed up, through no fault of my own, and I've finally reached the magical 6th year that the negative falls off. I can't imagine not being able to buy a house you can afford because of something not your fault, though.