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BUGJOJO

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HOW SHOULD PARENTS GIFT MONEY TO ADULT CHILDREN?
OUR IN-LAWS ARE OFFERING TO GIVE US A FINANCIAL GIFT TO PUT TOWARDS A DOWN PAYMENT OF A HOME. I JUST FINSHED PAYING OFF A TON OF DEBT VIA DAVE RAMSEY'S FINANCIAL PEACE UNIVERSITY, HOWEVER, MY CREDIT SCORE IS STILL POOR. WE HAVE AN OUTSTANDING STUDENT LOAN. I'M CURIOUS IF WE SHOULD ACCEPT THE MONEY GIFT FROM OUR FOLKS TO USE AS A DOWN PAYMENT OR USE THE MONEY TO PAY OFF OUR STUDENT LOAN, WITH THE HOPE THAT IT WILL INCREASE OUR CREDIT SCORE AND JUST PURCHASE A HOME WITH ZERO MONEY DOWN?

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It's hard to say not having a full financial picture. I believe $14,000 per person is the maximum gift allowance by the IRS for 2015. How much is the interest and principal  on your student loans? These loans don't go away and cannot be removed in the event of a bankruptcy. With a poor credit score you'll be paying a much higher interest rate for a home loan. I don't know how much you're looking at to borrow on a home loan and what your monthly payments will be. Making a principal reduction of a $100 a month greatly reduces the length of the loan and reduces your payments overall. Look at amoritization calculators available on this site and elsewhere. Perform research online. There are some good articles on this website you should read.

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