Mom helps with 1st home purchase.

What is the name of your state? Texas.

I want to buy this new inventory house. I am a 1st time home buyer. The builder will not sell to me. My mother wants to help me buy this house. They will sell to her. I transfer money to her checking account to buy this house in a 1 time cash transaction. She then closes the deal on this house with the builder with only her name on the papers. Once she receives the deed to this house in the mail after a few weeks, we will go to the title company to transfer the deed to my name; total time frame is a few months.

Can me and my mom do this? Do we have to file any tax forms? When she transfers the deed name to my name, is this a sale or gift or something else transaction? Thanks.

[Ummonx]

why not just have her cosign

[HomeGuru]

Originally Posted by kycao

What is the name of your state? Texas.

I want to buy this new inventory house. I am a 1st time home buyer. The builder will not sell to me. My mother wants to help me buy this house. They will sell to her. I transfer money to her checking account to buy this house in a 1 time cash transaction. She then closes the deal on this house with the builder with only her name on the papers. Once she receives the deed to this house in the mail after a few weeks, we will go to the title company to transfer the deed to my name; total time frame is a few months.

Can me and my mom do this? Do we have to file any tax forms? When she transfers the deed name to my name, is this a sale or gift or something else transaction? Thanks.

**A: the property transfer as you speak may be considered a "straw buyer" transaction and may also trigger the mortgage due on sale or transfer clause. In addition, if your Mom were applying for an owner-occupant loan, the transfer of the property to you would be considered a fradulent loan application/owner-occupant affidavit.