Can you borrow the down payment from one lender to then use to secure a mortgage with a second lender? And is that a good idea?

[Kevin Roach]

Looking to get into my first multi-family property (first of any type of property actually) and I don't have enough for a down payment.  Would it be possible to borrow the 20-25% needed for the down from bank A and then turn right around and give it to bank B as the down payment needed to secure the whole mortgage for the multi-family units?

Kevin R. 

[Bill Gulley]

Welcome to BP, Kevin. 

All lenders want your skin in the game, the only way to borrow a down payment is by showing you didn't need to borrow it. If you have 250K tied up in CDs (shutter to think) and you borrow a 100K against those CDs, not a problem. So long as the subject property cash flows, you have the credit, the experience in management and have reserves for maintenance and vacancy. 

A multi-family (5 or more units) may not be where you need to start out, be more successful by lowering your expectations getting out of the gate, like a single family property. 

Now, there can be circumstances where you can get seller financing and there are other strategies to get into properties, so start reading the forums and ask questions (and stay away from the gurus, learn RE before you deal in RE!) Good luck :)