Gift Funds to Buy a Home Makes for a Gift That Keeps on Giving

Can I use a financial gift from a friend or relative as a down payment on buying a home? Yes. In fact, one out of four first-time homebuyers uses a gift to make the down payment. Tax law allows gifts of up to $14,000 a year without tax consequences to the giver or recipient. (The amount may be adjusted annually so check IRS publication 950 for the current figure.) You could get a gift from two parents or two friends (for $28,000) without paying a gift tax. Using a gift for a down payment allows you to buy the home even if it’s not Federal Housing Administration (FHA)-approved. The best advice is to contact a well-connected REALTOR® and discuss this subject before you start looking for homes. My lender John Porter at Mortgage Masters is glad to help and can answer any questions you may have. Please feel free to call him at 206-954-8736 or john@mortgagemasterwa.com For more information and some tips to avoid costly mistakes when buying a home, ask for my Free Consumer Report called “4 Quick Ways To Buy A Home With Little Down.” I’ll send a copy right to you.