I have the opportunity to buy a vacation home from my grandfather @ 80% of it's appraised value. I realize that I still have to put 20% down as a down payment. However I don't want to put anything down. Can the seller (my grandfather) sell the home to me at 100% appraised value, giving me the 20% off, having me take at a mortgage for the remaining 80%? So in the lenders eyes I have 20% into it?
Is there a creative way to do this that a lender would be ok with?
Have your grandfather give you a gift of equity of 20%. Also have him pay all your closing costs and then you will truly get a loan with no cost out of pocket?
Like @Kevin Romines said, gifts of equity are allowed for second homes aka vacation homes (but not investment properties).
Great, thanks for the info. So he can gift me the 20% in equity, and there is no limitation on the amount he's gifting? I know cash gifts are capped at $14k per year.