Just got a reply from my accountants office. Does this make sense?
Bob suggests you document the $25,000 as 2 gifts, one to you and one to your wife. This is done with a letter from your father. Bob will help with the silent partner issue after the investment property is purchased.
Hope this helps.
You guys use Lawyers, and not Title Companies? Oregon doesn't want me doing business up there; I cannot take commission on deals in OR.
Any material contribution on any loan requires full or "adequate" disclosure.
Aw jeez, lawyers huh, makes sense, I need to do this right and I don't have the expertise myself, so I guess I call my lawyer and see who he can recommend.
Thanks to all for your reply's, helps to have you people to kick things around a bit.
Find out 1) WHERE escrow will be; either at the CU itself, or at ta title company.
2) If you have control over the choice, ask your accountant if he knows a reputable Title company with good Title/Escrow agents.
That's pretty much it.
What the OP is describing is basically mortgage fraud. Technically you are trying to deceive your lender into thinking you are a stronger borrower.
Lenders require that bank accounts are "seasoned". Meaning the money would have had to been there for months. And they will want to see the bank account that the DP check came out of. My guess is they will want to see 6 months.
And since this is a "investment property" that changes the guidelines of the loan that the underwriter will have to follow. And do not lie to your lender. You have to tell them it is an investment property. This effects the amount of DP required and interest rate.
There is a such thing as a "gift" for a Down Payment. However, I do not know if that applies to investment properties.
My advice would be to find yourself a reputable mortgage broker (if mortgage brokers even exist anymore) or investment consultant.
Last edited by DDNYjets; 07-10-2012 at 04:11 PM.
Thank you for your input.
Tis not my intention to deceive or commit fraud, did not mean to imply that.
I thought having the $25K in the bank would make me a stronger borrower, regardless of how I acquired it.
Maybe none of this will work out, but if it does I can assure you it will be done legally, I'm not looking to play anyone, just I am not sure how this will or should work out. But I'll get it figured out.
My wife said the Feds get notified at 5k, and even if you put smaller than 5k in over time a bank will look at it, she looks at 1k drops and asks for sources etc. she said that this does not mean your loan will be denied, but some banks look that low, her bank is very conservative.