Hi,
I took advantage of the Fannie Mae Family Opportunity Mortgage and bought my father a townhome with only 5% down but here is the situation and my questions:
Background:
1. I mortgaged everything in my name using the FOP program
2. My father gifted me the 5% down payment since it was going to be his house.
3. My father has made all mortgage payments from his own checking account and he claimed mortgage interest on his taxes.
4. Father pays 100% all expenses
5. I added my father to the Deed since he pays all the bills and lives there.
Updated Situation:
1. My father has asked me if I would re-pay (buy out) him for all closing cost and then he will just pay me the exact amount of the mortgage which is less than the 2019 Gift amount that a parent can gift a child ($15K).
Questions:
1. If I decide to buy him out and he continues to live there and pay all bills, is this considered rental or second home?
3. I will start to claim mortgage interest on my taxes but is there anything else I'm missing?
Any help would be great!
Thanks!
J-
