Unable to use a “gift” for down payment???
Long story short. Found a great deal. Found a private lender to provide the 20% down to purchase the property. In the process of getting qualified for a conventional loan, was told I was unable to use a “gift” of 20% down from a friend or partner to use as a down payment. Now I know I’ve read a million times of investors using a lender to fund the down payment, then a hard money loan to fund a rehab if necessary.... and there’s got to be a better way then letting that money “season” in my account for 6 months to qualify. The lender would be out of his money for 6 months and the deal would surely be long gone...
What’s the best way to go about this? Have the lender get qualified and put the mortgage in his name, and the title in both our names? What if he wasn’t looking to be an equity partner but just wanted a percentage of return on the money he lent for the down payment? What if he had the money but not the credit? What strategy am I missing here? Thank you in advance for your time to respond!