I am looking to by a house real soon. I definitely want to avoid PMI and put down 20% which amounts to about $100K of initial payment. I have no debt whatsover (no credit card/student/car loans). I have been saving for last few years and currently have ~55K in my bank account. My elder brother has offered to loan me the remaining amount (he runs a great business and is doing well). My relations with him are pretty good, and I am certainly considering it. My wife just picked up a job and we will be saving aggressively in near future so looking to pay it back in a couple of years. My question is
a) what are the tax implications of this for him and me? Am I liable for paying a gift tax?
b) will this be a problem when applying for mortgage? I know lenders look at the trail of money in bank account so this will be questioned?
c) any other repercussions of doing this transaction that my ignorant soul is failing to comprehend?
Thanks in advance !!!