In the News: Lending Adult Kids Money? And Mosaic Receives Top Rank!

Mosaic / Apr 5, 2018 / Mosaic News

Our monthly link roundup featuring Mosaic experts in the news has a surprise or two this month. Mosaic_in_the_news_lower_M.png  /March 13, 2018

Should You Lend Your Child Money to Buy a Home?

Kevin Gahagan weighs in with considerations for parents lending adult kids money to buy a home.

The main point here is to respect the formality of the loan, even if it comes from a place of love. 

Kevin especially recommends formalizing the agreement with a promissory note and mortgage:

“The parents are going to have to work with a title company to create the required deed of trust documents and record these with the county in which the residence is located,” says Kevin Gahagan, a certified financial planner and principal of Mosaic Financial Partners in San Francisco. “This will secure their interest in the property.”

“A promissory note and mortgage should be executed between the parents and child,” he says. “Without this, the parents' financial interest in the property could be jeopardized were the child to lose the house to creditors. It also provides evidence that the funds provided are a loan and not a gift.”

This formal loan document should state the loan's interest rate, term and transfer-ability, Gahagan says. It should also include an amortization table showing the balance remaining and equity accrued at any point in the loan’s lifespan.


Advisory HQ / March, 2018

Finding the Top Financial Advisors in San Francisco, Oakland, & Across the Bay Area

Advisory HQ Rating Image

If youre looking for the best financial planning, wealth management, and investment services in San Francisco, you might see a familiar name on Advisory HQ's 2018 top ranking Bay Area firms - us!

The ranking took into account our holistic approach to financial services, addressing all the disparate aspects of your needs and bringing them together into a cohesive whole. Advisory HQ also touched on our quarterly Womens Circles series, which empowers women through financial literacy and community. We’re proud to be ranked among the top in the Bay Area. 






Topics: Mosaic News