gifted/borrowed downpayment? homepath

[Eduardo G.]

Hey everyone,

I would like to know if you can use gifted/borrowed funds as part of a downpayment for a homepath investor loan?

Thanks,

Great site by the way, I wish I had discovered it long ago, look forward to reading all the knowledge posted on here

[Shanequa J.]

You can get gifted money if the money is strictly a gift. You need to provide bank statements from the person and a letter says that you will not have to pay them back. The only time you can use borrowed money is if the money is from a HELOC or home loan. They want to make sure that you do not obtain any new debt which will increase your DTI ratio. HELOC's and home loans are allowed because the money is technically your's.