Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
9y
@Michael Madoian You can't use borrowed funds for the downpayment for conventional financing. Lenders want "skin in the game". In general, they're also going to want to see cash reserves in addition to the downpayment.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
9y
@Michael Madoian You can't use borrowed funds for the downpayment for conventional financing. Lenders want "skin in the game". In general, they're also going to want to see cash reserves in addition to the downpayment.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9y
@Michael Madoian you are allowed to used borrowed funds to purchase a home with a conventional loan but it must be secured with a real estate property. Meaning, if you have a HELOC on a property, you borrow against that HELOC (which is tied to a property), then you can absolutely do that to make your down payment...as long as your other items make you qualify for the loan. If you don't have a HELOC, or a property to make a HELOC on, then you can borrow funds from someone as long as they have been in your account for about 90 days or so. Feel free to ask more questions if you need. Thanks!