Downpayment in a JV deal

2 Replies

When doing a JV deal where 2 parties are each paying half the downpayment but only one party is on title, what is the best way to arrange the funds to keep the lenders happy? In Canada, most lenders won't allow the funds to be transferred as a "gift" they often want to see that the party on title has had the full amount of the downpayment in their accounts for at least 3 months.

In this case, that would not be possible as the closing date is only 5 weeks away. 

Are there any strategies to solve this? 

@Evan Aagaard

I have heard if you add the investor A (that is on title for house and mortgage ) to a joint account w investor Bs money in it - then investor A can show he has access to full 20% down. This is assuming the bank doesn't ask for a statement from 3 months ago as I think the rule is you have to have it for 90 days, but most banks don't if you can show you have access to it.

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