Gifting Downpayments

6 Replies

I would like to buy a duplex as an owner occupant, but don't have the funds for a downpayment.  Has anyone asked a seller to gift them the funds for a down payment and then repaid the seller by adding that same amount to the purchase price?  Just curious if this is something legal. Or if anyone has other options they have used...

Typically a bank is going to want to see that the down payment has been in your account for at least 60 days or two bank statement cycles. I can't say that whether or not it's like that with every bank but it's always been that way in my experience. 

never heard of doing that clever. but I don't know

If you can't put together the small down payment on an FHA loan, then likely you don't have any reserves. Buying re without any reserves invites all sorts of issues...

Rob is right. I am pretty sure all banks will want to see the down payment in the your checking account for at least 60 days. I went through a similar process when my parents were going to lend me funds to purchase another property. The bank would not qualify me until the funds were in my account for 2 months.

Thanks for your response Rob.  Do you or anyone else know if it is the same for using a second loan?  For instance what if I got a second loan from a private party to cover the down payment?

Banks wont allow that @Timothy Trushaw Jr . You will sign a document at closing saying there are no other loans associated with the purchase. 

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