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Are you searching for tips on helping family with their mortgage? The current economy poses challenges to many people, including homeowners. If you have a struggling family member, here are three tips for helping them with their home loan.
Housing is essential. It’s also expensive. Cash, if you can swing it, is a great way to help a family member who is having difficulty making their mortgage payment. Be careful of tax laws, however. You can give up to $13,000 individually or $26,000 as a married couple to one person without having a gift tax attached to the amount the recipient is responsible for.
Technically, personal loans between individuals are subject to the federal interest rate, meaning you must charge interest to avoid the gift tax. Intrafamily loans can get sticky, but if you can agree on the terms and feel confident in their ability to repay the money, it’s a great way to help a family member in a tight spot.
Many lenders have programs in place to help homeowners whose finances mean they cannot make mortgage payments. Direct your family member to contact their own mortgage company or another reliable lender to find out what options can help them catch up and avoid losing their home.
If you have a family member struggling financially and is at risk of missing their mortgage payment, there are ways you can help. Contact the experienced team at Midland Mortgage Corporation for options and loan programs that can help you help them.