All Forum Posts by: Paul DeLeon

Ty, do you see any issues with the fact the daughter is obtaining the loan as a Second Home but not using the loan for a second home?

From a lender's perspective? 

I know that generally interest rates on Second Homes are greater than on personal homes but are the rates equal to Rental properties?

Are there fewer qualifications on second home loans versus rental investment loans?

Thanks

I have an opportunity with a family member to jointly purchase a home for the family member to live in as their primary residence. They will pay all PITI and repairs while there. The home is in Arizona. I live in California.

The loan is to be in my name (credit is better). The loan is deemed to be for a second home. I am "on paper" and considered to be the owner.
No rental money will be asked to be paid to me as the family member is paying the mortgage.
Do I have the ability to take interest and taxes as a deduction on my return? Or does the family get those write-offs?
What happens upon sale or if the family member should pass away?
Do I file any yearly tax information on my 1040?

The thought is I will receive the proceeds from the sale when or if the property is sold. 

Appreciate your soonest reply as the opportunity/closing is scheduled for mid-August
thanks
Paul