Borrow Additional Capital from Family for Mortgage?

[Adam Carbone]

Hello, newbie here! Looking to house hack for my first property and first home around Louisville, Kentucky. My wife and I have no debt and are looking to maximize that opportunity by purchasing a duplex and renting out the other side.

Still in the planning phase, we're trying to figure out when we will be ready to buy. 

Having never used credit cards or taken any loans before, I understand that my father-in-law would need to co-sign the mortgage anyway. 

So, my question is this: If a couple thousand dollars (i.e. >10000) in down payment were to make the difference between $450 in monthly mortgage and $415 in monthly mortgage, should I also ask my father-in-law if he would like to partner with me? I'm hesitant to ask because this is my first deal. Traditional wisdom says that borrowing money from family is bad.

On one hand, when has traditional financial "wisdom" ever made anyone any money?

On the other hand, borrowing money from anyone without significant ground rules and clear agreements is a recipe for disaster. 

Looking forward to some dialogue!

[David Espinosa]

To use money from family for fha loan there can be NO expectation of repayment. So you can't get a loan from family to help with down payment it MUST be a gift. That said there are down payment assistance programs available but you would have to check with your lender to see if you would qualify. I totally agree don't borrow money without a proper note writen up, even if it's family lending you money for deals, treat it like a regular buisness transaction.