Unit 3: Private Sources of Funds
Ken and Sue are purchasing a home but are short on the down payment required by their lender. Sue's mother offered to give them cash to help with the down payment. How much can Sue's mother give under current tax laws?
$30,000 (15,000 to each Ken and Sue)
Georgette and Elise are buying a home together, and have taken out a loan with a private loan company. They'll pay a bit more interest, and larger fees, but they feel it's worth it to have the home they've always dreamed of. What else might the private loan company require?
Collateral
Private loan companies may charge higher interest, larger fees, and could require ______ to secure a loan.
Collateral
Though not a loan, buyers may be able to enlist the help of ______, who can give them a tax-free gift to help them with their purchase.
Individuals, such as family members
Private loan companies may place a ______ on the property for which the loan is being taken.
Lien
What do sellers who agree to carry part of a loan for a buyer need to understand?
The risks involved
Which of the following are ways a private loan company insulates themselves from the risk of lending funds to a borrower who has had problems securing them elsewhere?
They may charge higher interest, higher fees, and require the borrower provide collateral to secure the loan.
Anna is selling her home and met a nice young couple she really wanted to sell to, but they couldn't get financing. If Anna agrees to carry part of the loan for the buyers, what does she need to understand?
The risks involved
