(Disclaimer: I'm definitely anewbie, so sorry if this question is elementary) I've done some reading about using creative financing, however I recently spoke with a loan officer about different ways that I could get a specific deal financed and her told me that it is illegal to get any financial assistance for your down payment (i.e. if you're going to get a mortgage on a property 100% of the down payment has to be your own money that got earned and cannot be money that was gifted or borrowed). Can anyone validate this? And what are some ways you have used creative financing to get a deal done?

There are a few different options but most you will need to owner occupy for. Gift funds from family members, grants, community 2nds, etc. So if you're looking into house hacking those might work. If you need a top-notch loan officer in Boise shoot me a pm. I know a guy who would be great for you to connect with.

@Jared Bouzek What are community 2nds?

@Troy H. Community 2nds are down payments assistance programs that are backed by a community program that is designed to encourage home ownership among lower income people. They are typically backed by funding from a government organization such as the city or county. Down payment assistance is provided in the form of a 2nd mortgage and each one can be designed differently. Some of them are forgiven after a certain period of time. Some of them you never have to make payments on - you just pay them off when you sell the home. It just depends on the program.

Originally posted by @Jared Bouzek :

@Troy H. Community 2nds are down payments assistance programs that are backed by a community program that is designed to encourage home ownership among lower income people. They are typically backed by funding from a government organization such as the city or county. Down payment assistance is provided in the form of a 2nd mortgage and each one can be designed differently. Some of them are forgiven after a certain period of time. Some of them you never have to make payments on - you just pay them off when you sell the home. It just depends on the program.

 Thanks Jared. So I am assuming the cities or counties are attempting to spur growth. Does this mean that those willing to provide community 2nds are typically the more depressed areas?

@Troy H. I wouldn't necessarily say that's the case for all community 2nds. I've seen them cover nicer areas but have income caps. I would say talk to a loan officer who is familiar with the specific area you're purchasing in, and they will likely know what is available.

@Jared Bouzek Will do. hanks for the information.

My lender wanted 25% cash down payment for a real Estate Investment loan, On a home and property that owners can no longer afford!

The sellers contacted me and wanted to know if I would be interested in there home and set up a meeting, The house and land. Is only 5 years old. I'n a rural area! Ànd to make a long story short they agreed to sell to me on the terms of payoff amount and $10K cash! To walk away! The Property has 50K in equity , And I'm strapped for cash down of 25% So after pondering what to do! I came across a old Carlton Sheets creative financing blog ,! Assume the loan! Bingo works for me, I no longer need the 25% cash down payment and I will Cash out,Refi as soon as I close the deal! Win - Win !!!