legally contributing to buyers down payment? - Posted by chris

import · September 24, 2003, 5:15pm

Posted by Dave Andrews on September 26, 2003 at 19:02:25:

In New York, who might these lenders be?

import · September 24, 2003, 5:15pm

Posted by chris on September 24, 2003 at 17:15:42:

I found a buyer for an investment property that I’m selling. My motgage broker told me he can qualify for 90%LTV. The problem is that the buyer has no down payment $. My broker tells me that the lender that we are going through does not require that the down payment be “sourced or seasoned”, as long as it comes from the buyers bank account. In other words, I could give the buyer the down payment money and just raise the sales price by that amount. Is this legal? My broker says that the lender not requiring the down payment money to be “sourced or seasoned” is “just one of those niches that you take advantage of while you can”. Any thoughts? I want to sell this property but I don’t want to do anything that will come back to bite me. Thanks

import · September 25, 2003, 4:52pm

Re: legally contributing to buyers down payment? - Posted by Bruce Lawson

Posted by Bruce Lawson on September 25, 2003 at 16:52:19:

Hi Chris,

You need to be careful because since any downpayment must be the borrowers own funds or in the form of a gift. You can give your buyer the funds as a gift but you will need to create a paper trail to prove that the down payment was in fact a gift. Your mortgage broker can help you with the proper forms.

Sincerely,

Bruce Lawson

import · September 25, 2003, 8:54am

Re: legally contributing to buyers down payment? - Posted by Charles Clark

Posted by Charles Clark on September 25, 2003 at 08:54:14:

There are several lenders that do not request a “seasoned” down payment.
Charles