I have a deal lined up to buy a duplex in Wisconsin. My parents own a few rental properties that are paid off and we are interested in taking out a HELOC on one of their properties and using it to fund the down payment on my deal. I would then use cash flow to pay their HELOC payments until we are squared up. I understand they can't gift it to me, so can they come on as investors instead since it is not a gift?
Just have them be on the loan with you. Then they can use the heloc funds for the down payment
@Darren Budahn , think that also puts them on the title.
I'm sure you know
under Conventional Loans and with that, the regulation is "no part of the down payment can be from borrowed funds".
btw; this is a duplicate thread to
So if I had the down payment saved up in a safe at home how do I prove to the bank it wasn't borrowed? Sorry if my questions are difficult I'm a rookie
You show the bank statement. It represents itself :grin:
btw: You will sign an Affidavit under penalty of Perjury that no funds have been borrowed.
Tread softly ...
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