What is the name of your state? Colorado
My wife and I are about to buy a new house. My parents have offered to put the downpayment into the house, so that we can avoid PMI. However, this will require an amount of money that exceeds the annual tax-free gift limits. It would seem ideal for us to list my father on the deed for the percentage of the downpayment, and me for the remainder. So, for example:
House purchase price: $400,000
My downpayment: $10,000
Father's downpayment: $80,000
Mortgage 100% in my name, all monthly payments come from me
If I understand correctly, we could then list my father as a 20% owner and me as a 80% owner on the deed. He's also said that he would like to pay 20% of the property taxes, so that he can write those off and us not have to "back those in" on the tail end when we sell the property to settle up on net versus gross on the profit.
Granted, we came up with this all on our own, so I don't know if this is a legitimate approach.
Any thoughts?
Thanks in advance.
My wife and I are about to buy a new house. My parents have offered to put the downpayment into the house, so that we can avoid PMI. However, this will require an amount of money that exceeds the annual tax-free gift limits. It would seem ideal for us to list my father on the deed for the percentage of the downpayment, and me for the remainder. So, for example:
House purchase price: $400,000
My downpayment: $10,000
Father's downpayment: $80,000
Mortgage 100% in my name, all monthly payments come from me
If I understand correctly, we could then list my father as a 20% owner and me as a 80% owner on the deed. He's also said that he would like to pay 20% of the property taxes, so that he can write those off and us not have to "back those in" on the tail end when we sell the property to settle up on net versus gross on the profit.
Granted, we came up with this all on our own, so I don't know if this is a legitimate approach.
Any thoughts?
Thanks in advance.
