Dude you have an attorney and not a accountant? Your questions are all valid, for a accountant. The laws change state to state. A good loan officer will know the answers and they can direct you towards the best loan for your situation.
If you sign your in laws to a lease to show additional income for you, the bank will want a rental history or in your case mortgage history and that wont look good. Yes you can write off the interest on your loan, no they can not homestead the property unless they are on title. You see what I mean you need a good LO.
The purchase would be considered an investment property if you bought it by yourself (you and the wife), but not if you merely cosigned the loan for the in-laws which would also over come the higher insurance costs of non-owner occupied property. If you bought it on your own and received rent from your in-laws you would have to pay taxes on it, but you would still be able to write off the interest on the loan regardless of whether or not any money was received or you were only a co-borrower/owner.
May 26th, 2009 at 6:42 pm
Dude you have an attorney and not a accountant? Your questions are all valid, for a accountant. The laws change state to state. A good loan officer will know the answers and they can direct you towards the best loan for your situation.
If you sign your in laws to a lease to show additional income for you, the bank will want a rental history or in your case mortgage history and that wont look good. Yes you can write off the interest on your loan, no they can not homestead the property unless they are on title. You see what I mean you need a good LO.
May 26th, 2009 at 6:42 pm
The purchase would be considered an investment property if you bought it by yourself (you and the wife), but not if you merely cosigned the loan for the in-laws which would also over come the higher insurance costs of non-owner occupied property. If you bought it on your own and received rent from your in-laws you would have to pay taxes on it, but you would still be able to write off the interest on the loan regardless of whether or not any money was received or you were only a co-borrower/owner.