Finding funding using gift funds for down payment

[Devin Duval]

Hello BiggerPockets family!

I am looking to purchase a duplex for $230,000. The ARV of the duplex is has been appraised at $323,000. I the I'm trying to find financing for 80% of the purchase price. I am having 20% of the down payment gifted it to me from a family member and the money for the rehab that needs to be done gifted as well. I have called a few lenders and I have been told that you can't use gift funds for a down payment. Is there a workaround for this? Any advice on the next steps moving forward to make this deal possibility?

The property in question was a development project started by the seller and he never finished the project so the house is 85% finished. All it needs is a driveway, HVAC system, flooring, and painting.