Raising Money for the Down Payment

[Tyler Rowley]

I just watched a RE video by Ken McElroy which I found helpful. I have a question  though. He mentioned raising the down payment for a house from an investor ($22,000 for a $110,000 home). Will a bank allow that? If the money isn’t seasoned for 2-3 months, it is my understanding that the bank won’t accept that as payment for the home. Am I wrong?

[Will Fraser]

Hi @Tyler Rowley, Yes, and No!  

IF you're talking about a conventional type of mortgage loan, then there are going to be more stringent guidelines on where the money for the down payment comes from.

IF you're talking about a commercial type of loan, from a bank, for investment real estate, then there are usually less stringent guidelines for the down payment and raising it from partners is feasible.  The policies on this are going to vary from bank to bank, so you'll be well served by finding a bank in your area that loves working with investors and visa versa, as they're less likely to "see a ghost" when you describe things like this.