If you mean that your family member is loaning you the entire amount to buy the house then no, you just have to qualify with your family (don't make them mad!!). If your family member is loaning you part of the money, for example covering all the out of pocket expenses, then you should get with a Loan Officer and give them the full picture.
If the seller is asking for proof of funds then you generally can show them a statement from the account of your relative along with a statement that they will be providing the funding. The seller just wants the money, whatever arrangements you make is your business.
Hope that helps.... more