How to structure 0% down??

[Bradley LaBrie]

I’ve got a former partner that wants to sell me his duplex. He’s willing to “gift” me the 20% down payment and to get the loan and then owner finance that 20% over 3 years to pay him back.

The problem is my lender says the only way I can get a gift of equity is by me buying it as my primary residence.

Has anyone done this before and how did they structure the deal without actually putting the 20% down? Thank you.

[Christopher Phillips]

@Bradley LaBrie

Well, the proceeds are the big chunk of money he's getting. Regarding the loan, since you don't plan on living there, most banks will treat as an investor type loan anyway.