Gifting a Down Payment for FHA

[Robert Del Rosario]

Hello Community,

So this is what I was thinking ... putting an REO under contract for let's say $100k, then sell it for $120k (staying within that FHA 20% flip rule) to a prequalified person under an FHA loan. However, this prequalified person does not have a down payment ... a 'relative' would gift them a down payment necessary. And then do a simultaneous closing? Any thoughts, quandaries, red flags, or advice of any sort? Any would be appreciated! Thanks in advance BP community!