Advice PLEASE! Can't use gift money for investment property??

[Jessie Niu]

My mortgage broker just told me that I can't use gift money from my parents as down payment for investment property due to the rules from FHLMC and FNMA. What? I never knew this!

The mortgage company can't give me the loan, so I either have to use my own funds as down payment or buy the investment property with a cash offer without loans from mortgage company.

Unfortunately I don't have much cash myself, but my parents are willing to help and give me cash. There must be an alternative way to make is happen!  

Please help!!!!!

[Upen Patel]

@Jessie Niu You need to find a new mortgage banker, because this one does not know how to read, let alone understand the rules and regulations.

You most certainly can use gift money to cover your down payment/closing cost. Though there are better ways to do it.

Also, if you are low on cash then you might run into an another issue down the road of the loan process.

PM me if you would like to discuss.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243