topic Re: Family loan/down payment in Mortgage Loans

Family loan/down payment

Lasardo — Tue, 16 Apr 2013 08:46:45 GMT

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?

Re: Family loan/down payment

Adalen — Tue, 16 Apr 2013 13:41:02 GMT

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.

Re: Family loan/down payment

Anonymous — Tue, 16 Apr 2013 14:11:00 GMT

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.

Re: Family loan/down payment

Anonymous — Tue, 16 Apr 2013 14:44:45 GMT

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.