I agree with most of the answers, I strongly suggest you contact Patricia Lavigne of Manhattan Mortgage at plavigne@manhattanmortgage.com or call her at 212-745-9012, she's great.

A gift of equity does not apply here since your fiance does not own either property.
You have many options here, from FHA to a "no income verification" mortgage, depending on the price and location of the new home and your income level/job status.
You can do 100 percent gift for most loans if you have more than 20 % down, and you have 50%.
It's pretty straightforward -- no real maneuvering needed -- but exactly which option is right for you I would only know after speaking to you and asking a few more questions.
Ruth Bonapace
bank of America Home Loans
ruthbonapace@gmail.com

Since you are putting down more than 20% all of the downpayment can be a gift. You would just need to have your fiance sign a gift letter and thoroughly document the transfer. I would suggest you get a lender and work with them on what kind of documentation that particular lender will require to show the transfer of funds. As far as your apartment.........since it is a departing residence you need to have 30% equity in the property (verified by a current appraisal........most likely ordered through the qualifying bank) in order to use rental income for qualification. Assuming you have the equity..........since you will not have a history of renting out your unit you are most likely going to have to get a rent survey to show market rents and take 70% of the market rent to account for vacancy. Since your scenario is fairly complex........I suggest you try and get prequalified with a lender that is up to date on guidelines and can walk you through the current lending requirements.

On conventional financing, you can receive gift funds towards your down payment but you yourself would have to verify at least your own 5% towards the down payment. If all of the funds need to come from your fiance and you don't have a verifable 5% down payment in your checking/savings account, then the easiest way to do that would be to add your name onto his accounts with a letter from him stating that you have full access to the funds at any time. The underwriter will want to verify the funds for the past 2 months so if you go to add your name, your name may or may not be added to prior statements. You will want to check. If so, then you can just get print outs from prior months. If your name is not on prior statements, then you can do what is called a Verification of Deposit that your bank will fill out to certify the existance of the funds in the account. I promise, it is not as difficult as it might sound. If you have any questions, please feel free to contact me.

Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com

Hello Suburbangal,

You certainly want to keep your fiance off of the loan if possible if he has subpar credit scores. The truth is that it will depend on the particular underwriter. You can do a gift of equity from your fiance to you and then put the mortgage in just your name, but the underwriter needs to approve it. Speak with your lender if you have one selected already, they'll have a better idea of how to handle the situation.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com

Dear Subrubangal,

Sounds like we need to determine if you qualify to refinance on your own, that way your fiance's credit will not impede you from obtaning the lowest rates possible.
At the same time, we need to evaluate your full picture to coordinate the refinance and the potential purchase to your best financial advantage.
I suggest that you jump right in and get on the phone with an experienced mortgage banker and crunch some numbers.

I will be happy to do the math for you. My initial consulatation is always FREE!

Best of luck,

Deborah Endres Camacho
…For All Your Real Estate Needs
NMLS Registered Mortgage Originator
MORTGAGE ACCESS CORP.
A Top-ranking Direct Lender
National HQ in Morris Plains, NJ
Email: DCamacho@moacc.com
Phone: 914-629-5661
Efax: 973-630-4166