Instead of going through a bank, my parents are thinking about lending me the money to purchase a $30k house. We are doing this because the house needs work and the banks do not want to loan to me. I will pay them back $500 per month for 60 months, or until the money is completely paid back.
Is this subject to the gift tax (because it exceeds the Gift Tax Annual Exclusion)? Are there any other tax issues that my parents or I should consider?