Use a financial gift from a relative as a down payment

One out of four first-time homebuyers uses a gift to make the down payment. Tax law allows gifts of up to $13,000 a year without tax consequences to the giver or recipient. (The amount is adjusted annually so check IRS.gov publication 950 for the current figure.) You could get a gift from two parents or two friends (for $26,000) without paying a gift tax. Using a gift for a down payment helps you buy a home even if it’s not Federal Housing Administration (FHA)-approved. The best advice is to contact a knowledgeable REALTOR® and discuss this subject before you start looking for homes. Buyers also have the option of borrowing from their 401K savings accounts to purchase a home. For more information just give me a call. Do you have a question you want answered? Feel free to call me at 206-226-0565. or email me at davidfrasch@msn.com