Gift money for investment property downpayment

General Real Estate Investing
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Gift money for investment property downpayment

Jeffrey Townsend
Charleston, SC · Member since 2016 · 32 posts · 7 votes

Is it true that you cannot use gift money as a downpayment on an investment property? I am being told by my lender that underwriting requires money in your account for 60 days. Is there anyway around this?

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Laura Cardenas
Rental Property Investor · Rochester, NH · Member since 2018 · 58 posts · 39 votes
7y

@Jeffrey Townsend

My lender had told me the same exact thing.

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  • Josh Bakhshi
    Real Estate Agent · Atlanta, GA · Member since 2015 · 359 posts · 158 votes
    7y

    Not really, banks are funny that way.  Unless you can prove it was your money for 60 days.

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  • Courtney Jones
    Rental Property Investor · Dayton, OH · Member since 2016 · 210 posts · 160 votes
    7y

    I was told by my lender,you can use gift money for a owner occupied purchase but not for an investment property. 

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  • Nielsen Manalad
    Fontana, CA · Member since 2019 · 4 posts · 0 votes
    7y

    Just a thought. Could the gifting person be a cosigner instead, then that may pass to the lender as a partner.

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  • Eric Nelson
    Bemidji, MN · Member since 2018 · 31 posts · 14 votes
    7y

    Find a bank that will.  I was gifted equity and they accepted it for the down payment.

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  • Laura Cardenas
    Rental Property Investor · Rochester, NH · Member since 2018 · 58 posts · 39 votes
    7y

    @Jeffrey Townsend

    My lender had told me the same exact thing.

    1Reply
  • Wren Martin
    Flipper/Rehabber · Chandler, AZ · Member since 2017 · 74 posts · 67 votes
    7y

    @Jeffrey Townsend use a non-bank lender that understands real estate investing.  You will not have the seasoning requirement of your DP like you do with a traditional bank loan.

    1Reply
  • Jeffrey Townsend
    OP
    Charleston, SC · Member since 2016 · 32 posts · 7 votes
    7y

    Thanks for the feedback. I have tried several lenders and they all say the same thing, even smaller ones. I do not want the person to be on the loan either. I could try and set closing for 75 days out but this would not be an attractive offer to the seller. Trying to find a way around it. 

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