Sallie Mae guidelines won’t allow “gifts” for investment

2 Replies

I accepted a $10,000 “gift” from my father for the down payment for an investment property. The lenders won’t accept the “gift” money, only money from my 401k which I found out recently that I cannot withdraw because it’s a Roth and 401k Roth only allow “hardship” loans. A regular 401k would allow any loan for any reason. I’m in underwriting. I’m About 90% into the process and this issue came up. Any advice or opinions ?

Originally posted by @Danny Rodriguez :

I accepted a $10,000 “gift” from my father for the down payment for an investment property. The lenders won’t accept the “gift” money, only money from my 401k which I found out recently that I cannot withdraw because it’s a Roth and 401k Roth only allow “hardship” loans. A regular 401k would allow any loan for any reason. I’m in underwriting. I’m About 90% into the process and this issue came up. Any advice or opinions ?

If you add your dad to the loan it will work out if he can qualify. If there's a contingency in the sales contract stating that if you can't get financed, then you should be able to pull out and get back your EMD.

I hope this helps and good luck.

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