Updated almost 9 years ago on . Most recent reply
Utilizing a HELOC for downpayment, and bypassing "gift" status
Hi Guys, I've been following along on the forum for awhile but this is my first post. So forgive me if I make any faux-pas.
My question is concerning down payment cash funds. My husband and I live in a house where the deed and mortgage are in his name only. We want to utilize a heloc on that property for a down payment on an investment property which will be in my name only (I have extremely low DTI). However, Fannie Mae will only allow half of the cash used for down payment on the investment prop to come from a "gift." My husband's heloc qualifies as a gift because I am not on the title to the house we live in and it's corresponding heloc loan.
My question for BP is, what can we do to utilize the heloc for the entire down payment? Add my name to the heloc? Add my name to the title of the house that we live in? Both? What is the easiest/best way? Thanks in advance!