tax: When Home Buyers Ask Mom and Dad for Cash
- 08/02/13 09:49 PM
Having trouble making that down payment? Call your mother. Maybe she and dad can help. Financial experts say that parental help is best when the money is a gift, with no expectation of repayment. That is because loans from family members can create extra hurdles when a home buyer applies for a mortgage. Lenders typically view a family loan as another burden that could affect a borrower's ability to make monthly payments, said Tom Wind, executive vice president of residential and commercial lending at national lender EverBank. In fact, a loan from a parent could raise a borrower's debt-to-income ratio … (2 comments)
tax: IRS Tax Tip: First-Time Homebuyer Credit Look-up Tool
- 05/16/13 08:39 PM
The IRS no longer mails reminder letters to taxpayers who have to repay the First-Time Homebuyer Credit. To help taxpayers who must repay the credit, the IRS website has a user-friendly look-up tool. Here are four reminders about repaying the credit and using the tool: Who needs to repay the credit? If you bought a home in 2008 and claimed the First-Time Homebuyer Credit, the credit is similar to a no-interest loan. You normally must repay the credit in 15 equal annual installments. You should have started to repay the credit with your 2010 tax return. You are usually not required … (6 comments)
tax: Making Room for Mom and Dad in Your Home
- 03/08/13 06:24 AM
How would you feel if Mom and Dad became your roommates? For some families, it’s a reality as they give shelter to financially struggling parents or ill parents who can no longer care for themselves. But as much as you may want to repay your parents for their care of you, you have to look at the financial and emotional ramifications of taking them in. “Parents are in the habit of taking care of their children,” says Rick Salmeron, certified financial planner at the Salmeron Financial Network. “The flow of wealth from older to younger generation feels natural to many.” … (0 comments)
;)
;)
;)
