Family Loans

In Loans, Real Estate by Tarleton

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“Neither a borrower nor a lender be; For loan oft loses both itself and friend.” William Shakespeare   As discussed in a recent article [1], Millennials are increasingly borrowing funds from mom and dad rather than a traditional bank – most commonly asking for help in making a down payment on a new home. Given the difficulty of making a home purchase in the present market and the significant expense involved, parents should seek legal advice regarding their options to best provide financial support to a child and ensure appropriate documentation is in place.   Some important scenarios for parents to consider include the following:   > What if the child later becomes unable to repay a loan?   > What if the child becomes …