Portfolio lender for a rental property using gift funds

[Anonymous]

Is it possible to get an investment property mortgage using gift funds as part of the down payment? We would like to help our son buy a condo in Hawaii to use as a rental but he needs our help with the down payment. If we deposit the money into his account for most lenders it would need to age. Is there a way to do that without aging the funds?

[Anonymous]

If i remember correctly, a number of years ago i had something similar happen to me. My wife's father gave us a few thousand dollars for a down payment on an investment home. The lender said we needed a letter from who it was stating that it was a gift and they were NOT promised repayment. Furthermore, they required a copy of the check that was deposited and her father needed to provide proof of the funds leaving his account.

Basically the lender wanted a letter signed saying no repayment was needed; bank statements from the giftor; and bank statements from the buyer.

Hope this helps.

[Anonymous]

That would work for an owner occupied, but from everything I can find Freddie and Fannie don't allow gift funds for an investment property. That's why I'm wondering if it can be done with a portfolio lender. Thanks though!

[StartingOver10]

I almost never recommend this, but consider co-signing for your son. He can refi after sometime (a year???) and take you off the mortgage.  The reason I mention a year is because the new appraised value will be used rather than the purchase price. Just my 2 cents.

[me12345]

No, however, it only needs to be seasoned for 2 months...so it could take longer than that just to find a home...

another option would be for you to purchase it as a 2nd home OR you could be a Non-occupying Co-borrower.

Thanks,

[StartingOver10]

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@me12345 wrote:

No, however, it only needs to be seasoned for 2 months...so it could take longer than that just to find a home...

another option would be for you to purchase it as a 2nd home OR you could be a Non-occupying Co-borrower.

Thanks,

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^^^Isn't that restricted to a primary residence only? 

[me12345]

Yes, you are correct... If this is investment property, then being a Non-occupying Co-borrower would not be an available option.

Thanks for the heads-up!