Parents money for down payment.

Sapient Razorfish / Eng Raavaṇ!
Jun 16, 2018 29 Comments

I am from India and currently residing in US. My parents would be sending around $30,000 to help me with down payment. Has anyone does this before? Would like to know the tax implications and how it works out.

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TOP 29 Comments
  • Apple gDPB46
    Gift tax exemption is $15,000 for 2018 per person so each parent sending you that will get you $30,000 tax free regardless of what you use the money for. I have no idea if it coming from abroad is an issue so it’s worth asking about that.
    Jun 16, 2018 4
    • Oath Dimmm
      This is completely wrong. Gift exemption is $15k which is correct but you don’t get taxed above it unless your lifetime gift total hits $5M. Moreover the $15k limit is just a declaration limit which means you dont’ have to declare anything if you received less than $15k. And if two parents gift you total $30k, you will have to declare. And again, just declare while taking the loan and while filing tax. No taxes will be levied. I have done this multiple times.
      Jun 16, 2018
    • Amazon / Eng Iomnbvc
      “This is completely wrong” - goes on to say nothing that negates what was said, but adds more detail.
      Jun 16, 2018
    • Square / Eng nom🍔
      afaik gift tax is on the giver and therefore only applies to them if they pay US taxes. If they live in India and aren't US citizens, they can give as much as they want tax free.

      Of course, I'm not a tax expert, do consult with one when large amounts are concerned.
      Jun 16, 2018
    • Oracle Carnival
      Square's answer is the only correct answer here. You can bring shitloads of money from your parents and invest in the US however you want. You just have to file Form 3520. Every new grad who buys a house in their 1st year of employment is basically doing this. Typically, I have seen Chinese parents being able to afford this, but good to see even Indian parents are not far behind :)
      Jun 16, 2018
  • Square / Eng SQ
    Literally call any bank and ask their mortgage brokers.
    Jun 16, 2018 0
  • Intel traderking
    Dude just take the money and make a down payment. Done!
    Jun 16, 2018 0
  • Uber 김정은
    Chinese here, was in same shoes, received my down payment from parents (>$200k). They sent as gift and I have no tax obligation as receiver, nor do they since they are not US citizens. (Gift tax only applies to giver who are subject to US tax laws). Mortgage agent had no problem with this at all and know their ways to handle it since it’s very very common among Chinese.
    Jun 17, 2018 0
  • Apple Leo Messi:
    $30k for down? Where are you buying? Seems like a killer deal you got
    Jun 16, 2018 0
  • eBay ottoman
    Transfer the money using crypto
    Jun 16, 2018 4
    • Facebook public
      Dont do this if you need a mortgage it wont be accepted
      Jun 16, 2018
    • eBay ottoman
      Do it pussy
      Jun 16, 2018
    • Facebook public
      Post 911 government requires underwriters to track and account for any money used in a downpayment.
      Jun 16, 2018
    • LinkedIn GareebAdmi
      Whatever you do, don’t do this. STFU ottoman, you troll
      Jun 17, 2018
  • Spotify iwik71
    One thing, you may want to have parents write a letter to you stating the amount and that it is a gift with no expectation of repayment. My lender required this as I had a 10k gift from parents. They get sort of itchy about anyone not on the mortgage having contributed a significant amount as that's an additional party that could argue they have ownership. This may depend on lender but it's an easy enough thing to do.
    Jun 16, 2018 3
    • Twitch Oe57):phnf
      ^ this. Same experience. Mortgage lender will trace every lump some of money and will ask you where those lump sums come from. If you say family, they will require a letter.
      Jun 16, 2018
    • Wells Fargo qUyB01
      That can be bypassed by first transferring to your own account abroad if u have one and then transferring it. You still have to do the relevant IRS disclosures if any of course
      Jun 16, 2018
    • Spotify iwik71
      In my case that was not true. As above poster said, they looked at bank statements and wanted explanation for any amount larger than a couple thousand dollars that was not a paycheck. I guess you could avoid by having parents make transfers in increments of hundreds of dollars, but that will probably get noticed and they will be suspicious why you did it. Not so hard to get parents to just write a letter.
      Jun 16, 2018
  • LinkedIn GareebAdmi
    There is no limit on gift funds (on the US front) coming from a parent towards downpayment. There is a 100K limit that the Indian govt enforces for outbound remittances. I went through the same thing, had them transfer around 40K. Best of luck!
    Jun 16, 2018 2
  • Salesforce HarcEndoff
    Are all Indian parents rich??? I keep reading about them sending money over for down payments. Does someone wanna adopt me? 👶🏻
    Jun 16, 2018 1
    • Microsoft UMbR31
      Gotta wait 70 years for green card tho
      Jun 16, 2018
  • Visa
    Vincent601

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    Vincent601more
    There should be no tax implications for you - if they are not US citizens there should be no US tax implications for them. They may have limits/taxes on their side but I’m not familiar with India’s approach. Have them wire the money directly to the escrow account with associated gift letters for the lender. Your lender/realtor can tell you more. We transferred a lot more than that and didn’t have any significant issues.
    Jun 16, 2018 0
  • Flagstar Bank FPQc10
    I know of a program with only 5% down and no PMI/mortgage insurance and you can get a loan up to $1,000,000 or 10% down and you can get a loan up to $1,500,000

    How much is the house you are looking for?
    Aug 12, 2018 0
  • Coupang coexist
    Bank will ask for the trace of good fund
    Jun 16, 2018 0
  • Amazon ynwa009
    I did the same and there is no restriction on getting gifts from abroad as long as money is coming from legit accounts.
    Jun 16, 2018 0
  • Cisco / Eng Nona me
    Anything beyond 30k you pay tax on that gift in USA.
    Also, I got 15k from India and did not pay tax on it
    Jun 16, 2018 0
  • Wells Fargo qUyB01
    Confirm online or talk to a CPA but I think limits for gifts from parents are much higher
    Jun 16, 2018 0