<prompt> Human: Hello PF! I am a 24 yr old that has received money 75k from selling my parents home last year. I am preparing for a graduatephd program, so I am not working but living off less than minimum wage to pay for my monthly expenses for the 2014-2015 year. A friend of mine interested in buying a home, he is making close to 45k a year and is interested in buying a home for 50k. He has mentioned how he is looking for mortgages and personal loans yet I had the idea of loaning him the money. I am not using my 50k as of yet, and instead of investing it in stocks or anything else I wanted to take an opportunity to make 50k work for me What he has explained is that he was married, divorced and the wife who kept the home moved away without completing the her half of the payments, eventually the house was foreclosed. Now, his bank has told him he has to wait 3 years until he can apply for a new home loan, therefore instead of paying 3 more years of rent he was looking for new ways to finance a home. Would it be prudentpossible for me to setup a loan with him for 3 years, then have him get a loan through his bank once he is elegible?  <response>: Thats not a loan, its a gift. Dont do it. If he wants to buy a house, then he can do it with his own money - in time. 