Buying a condo with loan from a relative

YOur relative should treat this like a business loan and have a lawyer draft a document. Borrowing from relatives is also a great way to cause strife in the family.

Some old saying about how the person might no longer be your relative if things go sour.

Seriously though, regardless of who the lender is, you need to record the mortgage with the City in order for you to deduct interest expense and in order for the mortgagor to have a valid lien.

would not suggest it. will definitely change the relationship for the worse

Don't do it unless your relative is someone who is so loaded that s/he doesn't care or really expect you to pay repay the loan.

If you currently can't afford to buy with a regular bank loan at 5% interest, it's probably for the best that you don't buy yet.

I appreciate the feedback and opinions, but what I am really looking for are answers as to how the process would go forward rather than whether or not it is a good idea. I would love to do a conventional 30-year fixed loan with the bank at 5%, but I am a freelancer and despite having fantastic credit any loans that I would qualify for would be at much higher interest and require more money down.

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