I’d tend to use a gifting program or raise the selling price and give them a credit. What I’d be afraid of is giving someone a deposit slip marked “down payment” for an option payment. What are you going to do if they can’t close and ask for their down payment back? Why didn’t you report the “down payment” as income in the year that it was received? See the problem?
I am looking for creative advice to help a T/B get their down payment together. Can you use the non-refundable deposit torwards their “down payment” if a larger downpayment is going to be required by the lender? Do you just put “downpayment” on the deposit slip as proof for the lender?