Mortgage with parents

Google
nodeskrto

Go to company page Google

nodeskrto
Apr 27 31 Comments

I’m a new grad, and I have very little context about how mortgages work.

My parents live abroad and want me to invite them for GC once I become a citizen. (I’m not Indian/Chinese, got selected for my h1b, started PERM. So would take 7+ years from now.)

My parents told me they’ll sell one of/all the houses they own and bring $1M(one)~$3M(all) to the US. (May become more than that in 7 years) They said they’ll gift me $1M if the law permits, but only if I live with them before I get married. (They sent me to the US for school from a young age so they want to live together) And I do want to live with them!

Kind of far from now, but I want to know how to make this happen.

Can we co-sign a mortgage, by using their money as down payment, and I pay for the mortgage/tax? Then, once time comes, can they give the full ownership of the house to me?

Or would they have to give me the down payment first and I’ll have to figure out gift taxes/other stuff?

Thanks in advance

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TOP 31 Comments
  • Apple
    suxvwi

    Go to company page Apple

    suxvwi
    This type of garbage needs to be banned. Foreigners should not be able to use foreign money from their family to buy assets here.
    Apr 27 8
    • Apple
      suxvwi

      Go to company page Apple

      suxvwi
      When will people get it in their heads that “citizen first” is not racist, and you are not entitled to do anything you want in a foreign without backlash from citizens. You don’t get to call backlash against foreign capital influx racist, that is such a garbage take.
      Apr 27
    • If he decides to stay in the US and has kids, they’ll be on the receiving end of competing with the world for a middle class life in the US. it will provide some perspective. I think US is already generous with its policies but now more than Canada on not taking any policy steps to get the housing crisis under control. Not just for now but for the generation to come - they really have no chance
      Apr 27
  • King County, WA / Eng
    milkbunni

    Go to company page King County, WA Eng

    milkbunni
    Hi I am currently in a similar situation, starting as new grad in June and buying a condo. I am paying 10% of down payment and closing costs, my mom will contribute another 10%. Thus she is a cosigner on the mortgage. Her name is on the loan but I will be paying all of the mortgage/taxes. However, the property title will be entirely in my name so I can do as I please in terms of the logistics.

    So yes, one of your parents can be a cosigner and contribute to the down payment, while the property can be in your name.
    Apr 27 7
    • Google
      nodeskrto

      Go to company page Google

      nodeskrto
      OP
      That seems like a great thing to do! Glad to hear that your parents were able to help & you are capable of paying back to them!! That’s awesome!
      Apr 27
    • New
      enBT65

      New

      enBT65
      This is the way to do it. When you buy a house, put one or both parents as a co-signer. They don’t need to be US citizens to buy a house. The mortgage will be granted based on your US earnings. Then, have them make a massive down payment. No tax implications on that. They can wire the money from abroad to the US bank.
      Apr 28
  • Upgrade
    yKPF70

    Go to company page Upgrade

    yKPF70
    Probably let them bring all money to US and establish a trust and then buy house in trust name and you become party to the trust.
    Apr 27 3
    • Upgrade
      yKPF70

      Go to company page Upgrade

      yKPF70
      Yeah, they could do that. Bring whatever is needs to buy and buy through trust. Always consult trust attorney because free advice is never complete.
      Apr 27
    • Google
      nodeskrto

      Go to company page Google

      nodeskrto
      OP
      Yeah! We are only talking about it, and nothing is fixed. We will definitely find a professional once the decision time comes!! Thank you for sharing the idea!
      Apr 27
  • MongoDB
    TcwY80

    Go to company page MongoDB

    TcwY80
    Depends on your family dynamics. If your parents are the controlling type, they'll control everything but you'll be paying. Happened to me and I got out, just wasn't worth it.

    It's not a gift if you're not free to do what you want with it. If they want to control everything, they should just pay for it. You can live there and save up your own down payment if you choose to.
    Apr 27 3
    • MongoDB
      TcwY80

      Go to company page MongoDB

      TcwY80
      I think it'll be fine then. You'll have to consult an attorney to figure out the details, but if you show that you have the money in your bank account, that's all the mortgage companies really care about.

      If you are financially capable of making the payments, it doesn't matter who paid the down payment.
      Apr 27
    • Google
      nodeskrto

      Go to company page Google

      nodeskrto
      OP
      Got it! Hopefully I’ll have some $$ saved up + my TC would be high enough when I’m around 30. Good to know that we can do that!! Thx
      Apr 27
  • Uber
    jskricnejm

    Go to company page Uber

    jskricnejm
    The cleanest way since money doesn’t seem to be an issue is to just gift you enough cash to buy whatever house you want.

    Why bother with mortgages. If you have ~2-3 million to play with, just pay cash. Interest rates are skyrocketing anyway.

    The IRS allows the gift tax free but only from another US citizen which your parents aren’t nor will be for some time
    Apr 27 1
    • Google
      nodeskrto

      Go to company page Google

      nodeskrto
      OP
      This will not happen at least for another 7 years. We’ll never know what’ll happen with the interest rate!

      It’ll take them another 5 years for citizenship, so they’d probably figure out the $$$ before that.
      Apr 27