Borrowing from Relatives for a Down Payment

[khart]

Is it allowable to borrow from relatives for a down payment on a rental property? If not, is it allowable to be gifted the funds from a relative?

If a gift is allowed, what steps will the financial institution take to determine that it is indeed a gift?

Lastly, if the above are allowed, is there a certain minimum amount of time the funds have to be in your account before the purchase can go ahead?

Thanks, KHART

 

[Thomas Beyer]

QUOTE (khart @ Oct 4 2010, 09:15 AM) Is it allowable to borrow from relatives for a down payment on a rental property? If not, is it allowable to be gifted the funds from a relative?

If a gift is allowed, what steps will the financial institution take to determine that it is indeed a gift?
Borrowed down payment is usually NOT acceptable to a bank whereas a gift with a written gift letter is !

This should happen three months prior to bank application !