Financing in Glendora>Question Details

Veditkeertan, Home Buyer in losangeles

I am planning to buy house.For downpayment we are planning to borrow money from freinds.

Asked by Veditkeertan, losangeles Sun Feb 3, 2008

If we borrow money from our freinds for downpayment Will we be questioned about the source of money and will it affect our loan sanction???If so is there any other options????

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Answers

6
Hi - my recommendation is to speak to a lender and ask them this specific question. The source of the funds may be inquired about.
0 votes Thank Flag Link Tue Nov 8, 2011
Borrowing money from friends is no longer accepted for a down payment. Any large deposits into your bank account must be sourced.
You can lend yourselve money from your 401K.
Have you spoken to lender yet?
0 votes Thank Flag Link Wed Oct 27, 2010
yes, it would affect your qualifications. You would also need to disclose the fact of the debt or risk being accused of fraud & face hefty penalties. Immediate family members can give you gift money for FHA loans but you still need to show savings for reserves etc. Good luck.
0 votes Thank Flag Link Wed Oct 27, 2010
Yes, your money will have to be 'sourced" it cant just appear in your account. Also you will most likely need gift letters that says you will not have to pay the money back to your friends. Also you will probably need to have a bank statements of where the money is coming from.
0 votes Thank Flag Link Wed Oct 13, 2010
Good morning, Veditkeertan!

You might have to disclose where the funds came from but it's usually as simple as a letter or one-page form that needs to be filled out. It's not a terribly big deal and should *not* change your ability to get a loan. Just remember that if you're working with a good lender, they won't give you roadblocks, they'll give you options. Too often I see lenders that just stop the process when some little changes could yield huge success!

Have a great day!
0 votes Thank Flag Link Wed Oct 13, 2010
Hi Veditkeertan,

If you are planning to purchase a home in the next month or two you might need to disclose the source of the funds, but if you were allowed to borrow the funds and deposit them in your account for three or more months before you purchase your home then it might not be as much of an issue.

But you really need to speak with your lender to what options they might have for you. Also, if you are a first time buyer, which for homebuying purposes means that you have not purchased or owned a home a home within the last three years, there are some wonderful programs both grants and loans that might be available to you.

If you have not already talked to a lender, I know some great ones right here in this area (Glendora, La Verne, Claremont) who are very familier with the loan programs and the city and county funding programs as well. Also, if you are not yet working with a Realtor, I would love to apply for the job. Feel free to get in touch with me at your earliest convenience either by phone or via email at Tisza (at) HomesByTisza.com (or through Trulia).

I look forward to hearing from you soon.

Take care,

Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922
Web Reference: http://Route66Living.com
0 votes Thank Flag Link Sun Feb 3, 2008
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