You do not need to file Form 3520 to report the proceeds of a mortgage loan.
Form 3520 is required only if:
1. You are the responsible party for reporting a reportable event that occurred during the current tax year, or you held an outstanding obligation of a related foreign trust (or an obligation of a person related to the trust) that you treated as a qualified obligation during the current tax year or;
2. You are a U.S. person who, during the current tax year, is treated as the owner of any part of the assets of a foreign trust or;
3. You are a U.S. person who received (directly or indirectly) a distribution from a foreign trust or;
4. You are a U.S. person who, during the current tax year, received either:
a. More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or
b. More than $15,601 from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that you treated as gifts.
None of theses situations apply to obtaining a mortgage from a bank to buy property.
