<prompt> Human: My wife 25 and I 26M are looking to buy a house any time in the next 6 months. We have saved approximately 50k for a downpayment Money not in retirement accounts and wouldnt cut into a 6 month emergency fund. We live in UT just outside SLC. My MIL has offered to loan obviously not in the legal sense us up to 100k to put as a downpayment on a home. She says she wouldnt expect us to pay interest on that amount as repayment, but we figure wed do at least a couple percent interest- maybe a bit more than a mutual fund or bond would pay but less than we would pay on a mortgage right now rates are at right around 4.The houses we want to buy are all under 300k. So Im sure theres a way that might make more money-sense of doing less as a downpayment and putting it in the market to earn 7 which is more than the interest gaining on the house, but for this situation lets assume our main concern is owning a home outright as soon as possible.My wife and I only gross together around 37k a year, but weve been extremely frugal and smart with our money since getting married. My MIL lives in SoCal and has the 100k as more or less liquid. I know theres limits on gifting tax free money I believe 12k a year- so would she be a co-owner of the home so it wouldnt be taxed as a gift? How do we best go about this? What are our options?I hope Ive included all the relevant information, let me know if Ive left anything out! Thanks!!  <response>: You wont be approved for a 300k mortgage on your income, even with a massive downpayment. You have to be aware that you cannot afford that right?Gift tax only applies after 5 million, nothing to worry about there.I would think if shes gifting you that money for the down payment she wouldnt want you two to turn around and invest it.Your annual mortgage payment alone will be 17k, non inclusive of property taxes, homeownersflood insurance, etc. Its not even remotely feasible on that income. 