Sorry for the confusion. I'll try to clarify.
My mom will simply live there - she will not be on the loan and will not be on the deed.
I am taking out the mortgage alone. My sister and I will both be on the deed (with equal shares of ownership)
My sister wants to pay for her portion in cash. The broker advises that this should be provided to me as a gift, and he will confirm the source of funds. I will use those funds as the downpayment for the home (50% down). I will then have a mortgage for the other 50%, which I will pay alone with no contribution from my sister.
I want to make sure I'm not missing something important, because all examples I've seen regarding a "gift" for a downpayment does not end up with the "gifter" having any equity in the home. In this case my sister will be on the deed. Additionally, I've seen guidance stating that the individual providing the gift can not have a vested interest in the home. I think this refers to individuals involved in the actual sale of the home (e.g. a realtor or lender), but I am not sure.
Again, I think this can be considered a gift, and my sister can treat it as such for tax purposes, but just want to make sure I'm not missing something important.
Hope this is more clear. Thanks again.
