13.5k views
0 votes
Some first-time homebuyers tap into the bank of mom and dad. In what circumstance would the parents' contribution be acceptable for loan qualification?

1 Answer

0 votes

Answer:

The money is given as a gift with no expectation of repayment.

Step-by-step explanation:

Some first-time home-buyers tap into the bank of mom and dad. Parents' contribution is acceptable for loan qualification as the money is given as a gift with no expectation of repayment. If the money is a gift, it intends that parents either gifters possess no plan of owning a portion of the property. It is provided voluntarily without expectation of repayment in return. If it's a loan, there is the expectation of payment, whether that is on a repeated repayment base or meanwhile the property is sold underneath that line.

User Maricela
by
3.4k points