Gift or bridge loan for son house purchase

[mf15]

Appreciate any advice.
Son wants to buy a different house,has one to sell. Seems better to us to buy first then sell the old house,tight market. As opposed to selling first then perhaps cannot find a new one,and have no where to go with family.

Anyhow my problem is. Short term gift him the money for a down payment,or do I have to go through IRS requirements for a bridge type loan. Or gift then IRS form 709. We know mortgage companies may have a 2-3 month look back in his bank account to see if money is there,and not a loan which would effect loan/value ratio. Son would pay back as soon s he sells his house.
He has talked to mortgage guy he says sure no problem, I say possible BS he is not the underwriter. Loan would be for 20% down and closing costs.
I see possible pitfalls,IRS and lifetime gifting which is not really a gift 150K or so,or son can gift me back the 150K. Don't have to worry about the 12.6M lifetime gifting,not even close.
Any expert help appreciated.
Oldmike

 

[Souschef]

I gave one son $250K as a down payment on a house. I filed a form 709 with no problems. The form is somewhat complicated, but there is enough help on line to figure it out.
I had to send a gift letter to the mortgage company stating is was a gift with no strings. That was it.
I had a letter prepared, but, as usual, they wanted their own format, so I complied.

 

[mf15]

Thats the problem just a short term gift until he sells other house then he would pay me back. I would hesitate to sign as a gift knowing its not really a gift. Or he has the money prior to any look back. Then if IRS gets involved and you did not charge interest of which they can collect tax,could get 40% fine.

oldmike