Clarification Greatly Appreciated

[Patrick Hancock]

New to BP Forums but have been listening to the Podcast religiously for about a year now. Have a question regarding my next purchase. Would like to borrow down payment from a friend or family member and take out a conventional loan for mortgage. From what I’ve read the terms between myself and the private money lender (my friend or family member) can be whatever works for both of us. I also understand that lenders do not usually approve a loan for the down payment in addition to obtaining a mortgage. As long as the friend or family member is completely removed from any sort of ownership of the property there should be no issue correct? The issue would be with the friend or family member not really having anything but my word that I’ll pay their loan back (no collateral) correct? Hope that makes sense and appreciate any and all feedback. Pat