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I am about to buy a house with my girlfriend and her credit is not established enough to get a good rate. I have excellent credit therefor, I would like to just hold/mortgage the note myself to get the best rate. I need to use ~40k of her money for a down payment. Is there a way she could pay for the down payment with the 40k and not have to "gift" the money to me? I see anything over 14k is taxable and I do not the gift to be taxed. Is there any other way we can go about this?

Another Idea I had was to open a joint account with her and have the 40k deposited in and write a gift notice to the mortgage company.. not sure if that would work

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    what jurisdiction are you in? Please tag your post with a country tag.
    – Vicky
    Commented Feb 10, 2015 at 21:30
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    Is your girl-friend's name going to be on the title of the house as a joint owner (joint tenancy with right of survivorship) or as a tenant in common (with specified percentage shares of ownership) or is her money going to be used for the downpayment but her name will neither be on the title deed nor on the mortgage? Also, take a look at the answers to How to avoid having my father's down payment assistance get taxed as a gift.
    – Dilip Sarwate
    Commented Feb 10, 2015 at 22:11
  • 14k limit reference means this is USA. She already gifted you 14k on December 31, RIGHT? And another 14k in 2015. You're 2/3 there.
    – Rocky
    Commented Feb 10, 2015 at 22:11
  • @Rocky "She already gifted you 14k on December 31, RIGHT?" Huh? Where did that come from?
    – Dilip Sarwate
    Commented Feb 10, 2015 at 22:13
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    Oh, and it's kind of a bad deal for her if you break up. She should ask her own SE question about that one!
    – Rocky
    Commented Feb 10, 2015 at 22:14

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