Home Buying in Marina>Question Details

Trulia San F…, Other/Just Looking in San Francisco, CA

Is it legal for an agent representing the buyers in a deal to lend money to their client for the down payment on a home?

Asked by Trulia San Francisco, San Francisco, CA Thu Jan 24, 2013

Help the community by answering this question:

Answers

3
BEST ANSWER
First off, real estate agents are not attorneys and can't give legal advice.
I think it becomes illegal if there is lender fraud. The loan has to be disclosed to the lender and that might trigger denial of the larger mortgage.
But what are called hard money loans are done all the time just as are family loans. The agent might be doing a hard money loan which is within the jurisdiction of a real estate license. You just can't hide anything from any federally insured or sourced loan. That is lender fraud and it carries federal prison time sentences.
0 votes Thank Flag Link Thu Jan 24, 2013
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
Contact
From a lenders stand point that would be a big NO! Unless said agent is your relative and gives you a gift letter that states no repayment is necessary.
0 votes Thank Flag Link Thu Jan 24, 2013
I don't know if it's illegal in and of itself, but the agent would definitely need to disclose that fact.
0 votes Thank Flag Link Thu Jan 24, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer