@uncgdc wrote:
For various reasons my sister will not be on the loan. She is just looking to provide cash. As mentioned before, just trying to figure out if this should be done through a gift to me and then I use that as downpayment on a mortgage, or as critter mentioned just have my sister buy her half outright at closing.
If she will be on the deed then many lenders will not give a loan unless a third party gives a gift and submits a letter that they will have no interest in the property whatsoever. Otherwise if a third party is on the title the lender will have a hard time foreclosing if that becomes necessary.
And yes, gifts to purchase property without any stings attached are done all the time. I did it myself for my daughter and son in law but the lender wanted a letter form me stating that it was a gift and I had not interest in the property.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
