How does a family mortgage work for their kids?
March 10th, 2010 | 
Author: Iѕ іt possible fοr a parent οf a married couple tο take a loan οr a finance frοm a parent fοr, lets ѕау $300k οr ѕο?
Iѕ thіѕ possible? Hοw dοеѕ thе interest rate work? Iѕ іt determined bу thе lender (thе parents)?
Wουld thіѕ bе a ехсеllеnt thing fοr both thе kids аnd thе parents?
Anyone саn shed ѕοmе light wіll bе appreciated!
Posted in Mortgage FAQ
Parents can give a confidential loan (finance) to their children, or anyone else they want. Keep in mind, this is a business transaction. It would be best if this come forth was handled by a lawyer. He/she would help determine a honest interest rate and other term of the loan.
Yes, what you’re asking for is a confidential finance. The rate is determined by your parents, and you should certainly use an attorney and an accountant. They’ll help you figure out what the amortized payments are. Its not really a excellent or terrible thing. The first part is the parents will need the 300k to lend to you. also, make sure the taxes are figured into the payments as well. This way you don’t have to worry about the county forcing sale on the house due to delinquent taxes. You’ll need to find an escrow company in order to establish that as well.