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New Member
posted May 22, 2025 7:21:49 PM

Can interest the interest on a personal loan against a home (instead of a mortgage from a bank) be deducted?

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2 Replies
Level 15
May 22, 2025 8:26:12 PM

No deduction unless the loan is secured by a lien on your home and that is clearly documented. 

Level 15
May 23, 2025 9:52:43 AM

To be counted as a deductible mortgage, the loan does not have to be made by a bank, but the loan must be secured by the home.  The generally means that you signed a promissory note allowing the lender to take your home if you fail to make payments, and (depending on state law) the note must be "perfected" by being filed as a lien against the property at the county clerk's office where deeds and titles are recorded.