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Posted in Mortgage
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sgreen8380

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Gift Down Payment- Credit Card
My parents are giving me half the down payment for my house. They recently told me they are planning on taking the money off one of their credit cards. Will the mortgage co allow that?

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Top Contributor
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Where the money comes from

doesn't matter to the mortgage lender. 

But that seems silly to me.  Credit cards should never be used that way.  They would get a much better interest rate if they took a personal loan or even a home equity loan.  Those are in the 2% to 7% range right now,  CC's are generally in the 9.9% to 24% range. 

Also remember that you are going to have to pay gift tax on that money as unearned income.  Right now that is at 40% so be sure to set aside money to pay that on your 2016 taxes.

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