Whenever you make a large purchase, such as a house or a car, you will likely need to make a down payment. How much down payment do you need? It depends on the purchase and who is giving you the loan. What happens if you change your mind on your purchase? Will you lose your down payment? Learn the ins and outs of down payments here.
Three Escrows Of Real Estate
In real estate jargon, "escrow" is a confusing word. There are three separate and distinct uses for the word "escrow" in real estate and to those unfamiliar with the intricacies of real estate language, they can be fairly difficult to understand.
IRA For College, Home Down Payment, Mortgage Payment Or Property Purchase
While most people save money in an IRA for retirement, you might be tempted to use the money for other financial needs. However, using an IRA for a down payment on a home or to pay for college is prohibited. The same goes for using an IRA to purchase property or to make mortgage payments. Check withdrawal rules first so you don't face harsh penaltie and taxes.
Assistance For First Time Home Buyers
A future home buyer is curious about government programs to help first time home buyers. Many programs to help first-time home buyers are local, but the Department of Housing and Urban Development (hud.gov) has an excellent website that explains many of its special first-time buyer programs.
Buying Investment Property Book Review
Ilyce reviews Robert G. Allen's book, "Nothing Down for the 2000s." Far more than most of the get-rich-quick books in this category, Allen lays out realistic real estate scenarios and thoroughly explains how it's all going to work. Although the book does a good job of supporting the reader to reach just one conclusion - you will get rich buying and selling property if you do it right - it also does a good job of explaining the details.
Gift Tax On Cash Given To Kids To Pay Mortgage, Buy Home
Parents who want to sell their home to a child are better off giving their kids cash toward the down payment for the home or the mortgage. The IRS allows you to give $11,000 as a cash gift tax-free each year, which the kids could use to pay the mortgage when buying the home. Giving your child enough cash to miss the gift tax will help them get their mortgage loan and buy the home.
Buyer Unable To Get Down Payment Returned
Buyers of an apartment building are denied a mortgage and are unable to get their down payment returned. It's important to know what is in your real estate contract to protect yourself if the home sale falls through. A contract with a financing or mortgage contingency would give the buyer the right to terminate the purchase if financing couldn't be secured.