Using Private Money for a Down Payment

[Zak Marinko]

One of my partners mentioned that in order to be approved for a loan, your down payment cannot be a “gift.” In other words, you must have earned the capital through some legitimate means.

When hearing this, I was confused because I know people use private money when purchasing a property. Can anyone clarify that my partner is incorrect, and you can use private money to pay for a down payment?

Thanks!