Can my father in law sell his house to me for under Market value? The County appraisal is 600k.

Usually when relatives sell property to each other it is viewed as an "Arms-Length" transaction, and the person selling the home can give a 20% gift of equity for your down payment requirements. So, if your father-in-law wants to sell you the house below market - it is his choice. However, you need to make sure that closing costs, payoff and other expenses are factored in, so that it doesn't cost him to sell you the home. Let me know how I can assist you further. Mary Papageorge - AmCap Mortgage - 713-569-0025

I agree with everything that Marypap has said. I am very experienced in these types of loans and would love to help you. Please call me at 214-722-2650. I am currently in the office and will be in all day. Is there a number I can reach you at now? Louis Balady Executive VP/Owner214-722-2650lbalady@townsquarefinancial.com

Roger the bank appraisal has nothing to do with any tax implications please call me at 214-722-2650. Is there a number I can reach you at now to explain more? Louis Balady Executive VP/Owner214-722-2650 lbalady@townsquarefinancial.com

Please email your phone number to lbalady@townsquarefinancial.com. Don't put your email on this forum

Mary answered that exactly right. I have done several of these loan as of late. I'm seeing the market of these types of seller/ Buyers increase. Let me know if I can answer any questions. If you want you can email me the detail and I can send you a custom quote for the loan. We are currently offering a 4.125% 30 year fixed with no closing costs on this type of transaction. I can be reached at 619-886-3294 or dan@omnifund.net

He sure can and you can use the equity as a gift for down payment requirements.

There are two issues here: Like Mary stated, there are advantages available for financing in getting this kind of equity from a family member. Second, there may be tax implications - This is advise best sought from a tax expert in the form of a CPA. Good Luck to you.

Great answers previously, I have a similar transaction I'm helping with right now. Your father should check with a tax specialist to make sure, sometimes there are tax implications - others not. That is a separate issue from using the reduced price to show as your downpayment and the purchase agreement must be structured correctly to consider the "gift os equity" as your downpayment. Work with an experienced mortgage lender to help you with those details but encourage your father to double check with a tax professional on that question.

There are potentially two separate issues here: 1) Will your father in law be gifting any equity to you (in lieu of you making a down payment) and 2) will your father-in-law have tax implications based on the below-market sale.The tax related questions are best handled by a CPA or a Tax Attorney (I know a few good ones if you need a referral.) As Mary mentioned below, it is important to make certain that your father-in-law structures the sale price correctly so that he can receive whatever proceeds he is looking to get, or at the worst, does not owe after closing. Please feel free to contact me at 281-841-1723 so that I can assist you in structuring this. It is also important to choose a good title company to assist you, as there will not be a Realtor in this process (most likely).Thanks, Rich

Any tax issues for your father will be based on the sale price, and his acquisition cost (purchase price plus certain improvements and selling costs), not on any third party (bank) appraisal. He has a gain exclusion of $250,000 if single, $500,000 if married. Existing loans are not considered for tax purposes, except in very rare cases, which do not appear to apply here.