Legal Question in Credit and Debt Law in Virginia

purchase of a vehicle for my sister

My sister is 50 years of age and single, she resides in Watkinsville, Georgia. Recently, she purchased a small home through USDA. Her car is 13 years old and requires replacement. Unfortunately she does not have the positive cash flow to do so. I would like to buy her a new car or give her the money to proceed with the transacation. USDA has indicated her home loan payments will be penalized (i.e. increased) if she accepts the $35,000 (money for the new car). What are my options to give a new car? Thanks GL


Asked on 3/15/08, 6:50 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: purchase of a vehicle for my sister

You should look into the possibility of buying a much cheaper car in your name and then transferring the title to the vehicle to your sister as a gift. (The effect would likely be negligible or none at all on her USDA home loan.)

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Answered on 3/15/08, 9:05 pm


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