Welcome and thanks for your question!
1) It is possible for individuals to be listed on the deed but not on the mortgage note, although lenders may be reluctant to do this. This is something you should work with your particular mortgage lender on.
2) It is very unlikely you will have serious gift tax consequences for a few reasons.
First, understand that gift taxes are not the responsibility of the recipient, but rather the responsibility of the giver.
In this case, that would obviously be your parents.
Second, there are a few exclusions that will make it unlikely your parents will have to pay any gift taxes on this gift, but will probably still have to file a return.
First, only gifts in excess of $14,000 per person are considered taxable.
My parents contributed $200k to the initial down payment...
If your parents are both making a gift to you and your husband, there is a potential $56,000 that could be excluded right off the top.
That is good news at least! Do you know what the gift tax is above the $56 k?
Second, the lifetime gifting exclusion in 2013 is $5,250,000 per individual. Any amounts gifted that fall above the $56K are still going to be excluded from tax if your parents have not made more than $10,500,000 in reportable gifts in their lifetimes.
Each of them will still need to file a gift tax return, Form 709, to report that they made a gift above the $14K limits, but no tax will be due as long as they under the lifetime exclusion.
That is fantastic news - thank you!
Glad I could put your mind at ease
Did you have any other questions?
Just to be clear - because this falls under the $5mm lifetime exemption rule - my parents would not have to pay tax on this gift. And because I would be the recipient, I would also not have to pay tax on this gift?
Correct. No taxes would be owed by either of you.
Great many thanks!