Mortgage down payment for friend question

[nanik]

First of all, this will never work. Bank will not approve loan for which downpayment comes from Borrowed money, there is a reason why bank will try to enforce 80/20 rule to make sure you have good standing on ur money, and bank will review past statements to make sure money is not borrowed.

 

[SaradaChinnodu]

1 hour ago, venkannadora said:

Avunu bro kani adhi thana head ache. Nenu middle man mathrame. Money collect chesi thana account lo veyyadam anthe

just curious, why can't he collect on his own , why does he need you in middle?

[nanik]

"Typically, mortgage lenders look at the exact amount of the gift, where it came from, and the relationship between you and whoever gave it to you. Lenders are less likely to allow you to use gift money for a down payment if it didn't come from someone close to you. When you use gift funds, you have to provide a gift letter that proves the funds are not a loan to be repaid. You may also be asked to provide documentation to prove the transfer of the gift into your bank account. This may include asking the donor for a copy of their check or bank account statement."

You will be in trouble..

 

 

[yemdoing]

1 hour ago, venkannadora said:

Friend mortgage down payment ki help aduguthunnadu.

He is collecting money from multiple  friends around 80k and asking my help to use my  bank account to collect that money and wire transfer that money to the title company during closing.

Is it legal doing?

Any issues with IRS regarding audio and any taxes to pay.?

Evaraina ila chesi unte koncham info share cheyyandi vayya plz.

I want to help him but want to make sure no issues with it.

Why can’t he use his own account ? Yekkado theda koduthundi 

[yemdoing]

1 hour ago, venkannadora said:

Friend mortgage down payment ki help aduguthunnadu.

He is collecting money from multiple  friends around 80k and asking my help to use my  bank account to collect that money and wire transfer that money to the title company during closing.

Is it legal doing?

Any issues with IRS regarding audio and any taxes to pay.?

Evaraina ila chesi unte koncham info share cheyyandi vayya plz.

I want to help him but want to make sure no issues with it.

Gift ga icchina you need to pay gift tax if it is more than 15k or some other amount 

[keertana]

55 minutes ago, yemdoing said:

Why can’t he use his own account ? Yekkado theda koduthundi 

lender will check his all account statements. he need to explain all those incoming transfers. 

there is nothing wrong here. many people does this  

[Thokkalee]

There are limits on how much you can gift for the first home purchase.. you have to pay tax if that limit exceeds. Another approach is to pay whatever he has, get the loan approved, and then prepay the loan with that amount.. no one asks how much you prepay and the source of the funds.. he can pay them himself.. 

[ranam_007]

I think there is a limit first find out the max amount. Also make sure you get letter or proof