Lender willing to accept gift funds for an investment property?

[Tyler Geisler]

Does anyone have a lender they recommend who is willing to work on a Short Sale deal where I would use some gift money as a portion of the down payment. The property is in KS and is less than 50 miles from my primary residence. We intend to use the acreage as a place to escape the city when we want but are finding it difficult to get lenders to accept the use of gift money. 

The property has a house on it but it is unlivable in it's current state. 

Any suggestions would be most appreciated!

[Caroline Gerardo]

Gift isn't the biggest problem. There is a house which is a standing hazard from what you describe. Can you get insurance to cover the risk of kids breaking in and nearly dying (probably not). Will the short sale servicer/lender approve you and how long will that take (months)? If you have the 20% PLUS gift letter only from family member and you can qualify full doc (with IRS returns) AND the loan is large enough not to be a High Cost (most have minimum loan amounts) there are some sources but it will be dear.  This is a hard money only deal- the exit strategy is to either scrape the lot and sell in 18 months or come up with the cash to rehab the house to meet current health and safety codes in 18 and then refinance.