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Can my husband and I be a mortgage lender for out daughter.

She currently has a loan at 6.5% interest and would like to refinance at 4.5%. We have money we would like to invest and would like to be her mortage lender. She can pay us and we make some steady income on our investment. How would we write up a contract.

Asked in Investing - 116 days ago

Tags: mortage loan and contract 

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shawdog
shawdog
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A local law firm will be happy to write up an agreement. The key thing to note is that the mortgage must be recorded at the town office (same place that records deeds) so a lien is placed on the property. This will (a) protect your loan, so your daughter can't just go to a bank and take out another mortgage, but if she tries to, you are already in the first position, and it makes it tax deductible to her. Of course, you'll pay tax on the interest received.

Answered by JoeTaxpayer at Nov 24, 2009 09:12 PM

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JoeTaxpayer
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I second the consult-a-lawyer answer.  If you don't do it properly, it could have major tax implications for both you and your daughter.

Answered by KyleAAA at Dec 12, 2009 05:30 PM

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KyleAAA
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