Cash Offer on HomePath

[Ankur Patel]

Hello,

I am looking into a HomePath property where I would like to purchase it in cash using privately raised money.  However in a conversation with a mortgage lender who claims they know the process, they mentioned that Fannie Mae will still look to at my bank statement to see where the monies came from; if it comes as a gift (as it will look like in my bank statements) then I would first have to pay income taxes on that amount and then look to purchase the home.

Does anybody have any experience purchasing a property through HomePath using private money that was raised? I wanted to give ~10% return to my investors once I flip the home as I will be getting the home at 70% ARV.

Any help would be appreciated, thank you! 

[Wayne Brooks]

Your mortgage lender is an idiot, or just a straight liar.  You'd be making a financed offer, Unless you simply are removing any financing contingency.  Yes, for a "cash offer" the bank will want to see a bank statement, In Your Name, with sufficient funds.  A private lender, is still a lender, therefore you are making a financed offer.