Can interest for non-secured real estate loans be tax deductible?
My husband works for a large financial services firm. We are getting a mortgage for our first home purchase through this company and one “benefit” they offer to employees is, if you get a mortgage through the company, they also offer a $ 2500 or $ 5000 (your choice) *non-secured* loan for a five year term. During that five years, you pay only interest and they pay principle. After five years, you pay both P&I. The catch is that the entire loan amount must be used toward a downpayment or closing costs for your refinance or purchase. Since this loan is being used 100% for home purchase purposes, is any of this interest tax deductible?