Family loan/down payment

[Lasardo]

My family will be loaning me the money I need for the down payment on a house/closing costs..does this need to be seasoned?

[Adalen]

They will need to source it.  How far back they go is up to the lender.  Just as a heads up, it is not considered a loan.  Refer to it as a gift.. because it has to be given with the understanding that you're not expected to pay it back.

[kdmitchell27]

Right. Never ever call it a loan, never mention it as a loan of you won't be able to use it. It has to be a gift with the understanding that you will not have to pay it back in the eyes of the lender. So whatever you have as a plan with your family, keep it to yourself. As far as the lender is concerned it is a gift.

[foofighter74]

And remember that if you do, in fact, pay back the money they gift you...you've technically committed mortgage fraud.  So make sure your family is quiet about it as well.