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Bank of Mom and Dad still works

DEAR BOB: Our 25-year-old daughter has just landed her first job in New York City. Her pay is dismal, but she has about $80,000 for a down payment on a condominium or cooperative apartment in Brooklyn. My husband and I want to help her out. But we don't think co-signing a mortgage is a good idea. Can we be her mortgage company and loan her the mortgage money at market rate? I fear she won't qualify for a loan as she earns only $32,000 annually. --Susan K. DEAR SUSAN: Yes, you can become the world's best mortgage lender, The Bank of Mom and Dad, to finance your daughter's purchase of a condominium. But I strongly suggest she avoid buying a co-op because there are so many drawbacks, especially the required buyer approval by the co-op board of directors. That's why co-ops usually sell for less than comparable condos. Purchase Bob Bruss reports online. Although your daughter's interest payments to you will be tax-deductible interest for her, that interest will be ordinary taxable income fo...

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