How to transfer the borrow money from relative from china to buy property in the USA?

Asked by seller0101, San Jose, CA Thu Dec 23, 2010

Hi Everyone,

I am trying to borrow some money up to $110k to from a relative in China to help me buy a property in the USA. Do you know how can my relative transfer the money to my bank? Any document the government might require me to provide such as a borrowing receipt or prove source of fund? and any tax consequence or government regulation from China and the US?


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shnxx, Home Buyer, San Francisco, CA
Tue Apr 16, 2013
I also want to know the precise answer to this.
Did you have to pay taxes?
1 vote
Mike Ackerman…, Agent, San Francisco, CA
Thu Dec 23, 2010

This is where the Patriot Act comes in. You must be able to show a paper trail from whence the money came, its source and legitimacy. Most banks, especially Hong Kong Shanghai Bank understand this and I have had several clients work with them before. Speak with them. They know the process and when you're ready to buy, remember the good agents on Trulia like Ellie, David and myself to represent you on your purchase. Remember - Quality representation costs no more - and - to which my Mom would add; "You get what you pay for."

Happy Holidays and wishing you much Health, Happieness and Prosperity in the New Year!!!

Mike Ackerman
Building Trust for Life
Zephyr Real Estate
ABZ@ZephyrSF.Com - 415-695-2715
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1 vote
Karen Mai, Agent, San Francisco, CA
Fri Dec 24, 2010
Do you need to get a loan on top of the gift? If no, that's great. Any methods of transfter would be fine, but talk to cpa about tax consequences. If yes, it's best not to tranfer fund into your account, just wire directly into escrow account. Most people just do gift letter and Lender has the form.
0 votes
David Tapper, Agent, Burlingame, CA
Fri Dec 24, 2010
Nate, Usually your lender will tell you if you need the gift letter to get approved for the loan, but they cannot advise you about the taxes. Ask your CPA that question. If you don't have a good one, call Regan Chinn

The best way to have the money sent is by wire, from your relatives to your bank.


0 votes
seller0101, Home Seller, San Jose, CA
Fri Dec 24, 2010
Thanks all, do I need to write a letter and signed by me and my relative that the money is borrowed, so I don't get tax on? and what is the steps to take to transfer? PayPal is better or western union or just transfer from bank to bank?
0 votes
Bev Smucha, Agent, San Francisco, CA
Fri Dec 24, 2010
A lender is going to want to see seasoned money; so it would need to be in your account for a few months or you can do a gift letter. Of course check with your CPA, but it would appear that if a large amount goes in your account you may have tax consequences. Most people just do a gift letter. Your lender will supply you with a form for your family to fill out and sign. The funds can be wired into escrow. It is done all the time between family members. I have had several clients purchase a home with the assistance of family; locally and from
China. One caution, I would like to mention is its very difficult to refinance and get cash out these you may not have the ability to pay them back in a few years. Best of Luck, and contact me if you would like a
referral for a lender or you need any help.

Bev Smucha
Soval Realty
Office: 415-565-4498
Direct: 415-585-0343
Cell: 415-699-0941
0 votes
Karen Mai, Agent, San Francisco, CA
Thu Dec 23, 2010
Money from relatives must handle correctly and carefully because all lenders want to see paper trail. Working with a good loan officer is the key. Let me know if you need the contact info. Good luck and happy holidays!
0 votes
Ellie Kravets, Agent, San Francisco, CA
Thu Dec 23, 2010
Hi Nate,
I agree with David, you should talk to your lender or mortgage broker . Let me know if you need a referral. To transfer (wire) money it's very easy,but you need to know what kind of papers you must have to satisfy lender's requirements.
Happy Holidays!
Ellie Kravets
Zephyr RE
0 votes
David Tapper, Agent, Burlingame, CA
Thu Dec 23, 2010
Nate, here are a few suggestions. You should talk to your bank to get wire instructions, your CPA about taxes, and you need to make sure the person who is sending you the money can show where the money came from. Lastly, make sure to talk with your lender first, and they will tell you how they want it sent. They need paper trail.

I have had clients from China purchase homes here and get money transfers from over seas , but they still need to show where the money came from.

Good luck and Happy Holiday's.

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