• phone: 706-922-9292
  • fax: 706-364-0897

Blog by Philip Jones

<< back to article list

HELPING YOUR CHILDREN BUY A HOME

     There are now both FHA and conventional loans which allow parents to gift or lend to their children some or all of the down payment and closing costs on a new home in Augusta, Georgia.

     If your parents lend you the money, you must qualify with the payment on the loan (along with your mortgage payment and any other debt payments).  Generally, the loan must be amortized over a period of five years or longer (interest-only notes are not allowed).  If you receive funds by gift, both you and your parents must sign a “gift letter” certifying that no repayment of the gift is expected or implied.

     Some loans for conventional financing have income limitations, unless the gift is equal to or greater than 20% of your home’s purchase price.  FHA loans, unlike conventional loans, typically have loan amount limits that vary with geographic area.  You would be wise to discuss all of the options with your mortgage lender to find out which loan program best meets your individual needs.

 

Family Home

 

comments powered by Disqus

Newsletter

Click here to sign up for our free newsletter!
CONTACT ME TODAY
----------------------------------------------------
Sign up to receive my email newsletter
full of helpful home improvement,
lifestyle & home buying/selling tips.
First Name
Last Name
Email
Interested in buying
Interested in selling
Interested in property management
Interested In becoming an agent
I am currently an agent with:
Timeline of interest: