Accepting a "gift" as a downpayment w/ my FHA loan concerns

2 Replies

Hello,

So I am planning on using my FHA loan (3.5% down) for my first residential/multi family property (4 units or less). I would live in one unit and rent out the others. I know it's possible for me to accept a gift from a friend and use it to cover my down payment. But I want to know if it's possible for me to accept the gift from a friend (who is also a small investor, with cash on hand from his previous professional sports playing days) to cover the downpayment AND THEN split the ownership and the rental income from the property with him?

Hi @Jacob Younger - it's generally a bit more difficult to justify a gift from a non-relative than a relative, but it can be allowable under certain circumstances. There is also not supposed to be any expectation of repayment for the gift, and the situation you described, as you described it, will likely not be allowable by a Lender. 

Originally posted by @Reid Chauvin:

Hi @Jacob Younger - it's generally a bit more difficult to justify a gift from a non-relative than a relative, but it can be allowable under certain circumstances. There is also not supposed to be any expectation of repayment for the gift, and the situation you described, as you described it, will likely not be allowable by a Lender. 

 Really appreciate that Reid. Will take it into account and keep saving. Hopefully there's another way I can get this done.