Investment Property Mortgage Loan

chints · ‎10-05-2015

We are looking to buy a condo as a investment property, the offer we put is for $175k, we have about $25k that we are planning to put towards the purchase. I was planning to borrow additional $15k from family to cover the 20% down and any other costs. My score is 678. I got a preapproval from quicken loans. Spoke to a local lender who said unless I can put down 20% of my "own" money I shouldnt even waste time going through with this process. I was planning to ask the same question with the quicken loans but while I am waiting for his call, wanted to post the question here. Thanks in advance

ezdriver · ‎10-05-2015

@chints wrote:
We are looking to buy a condo as a investment property, the offer we put is for $175k, we have about $25k that we are planning to put towards the purchase. I was planning to borrow additional $15k from family to cover the 20% down and any other costs. My score is 678. I got a preapproval from quicken loans. Spoke to a local lender who said unless I can put down 20% of my "own" money I shouldnt even waste time going through with this process. I was planning to ask the same question with the quicken loans but while I am waiting for his call, wanted to post the question here. Thanks in advance

Did Quicken Loans know that you are planning to borrow the down payment? If yes, that preapproval is worth nothing. You can use gifted funds [as in not having to repay] to meet downpayment requirement but not loans.

chints · ‎10-05-2015

Thanks for the reply. I need to clarify the gifting with quicken loans. I am not sure if they got that when we initially spoke.

So for investment property(not primary home) we can borrow gift money for downpayment?

ezdriver · ‎10-05-2015

@chints wrote:
Thanks for the reply. I need to clarify the gifting with quicken loans. I am not sure if they got that when we initially spoke.

So for investment property(not primary home) we can borrow gift money for downpayment?

No...you cannot borrow money for downpayment ... period.

If your family want to give you the money as gift(s), and will document the gifting of funs, then that money may be used as a downpayment. Gifting means that you do not have to pay it back.