Lender doesn’t allow down payment money to be a gift

[Doron Rice]

Hi,

After contacting a few lenders I’ve realized that the down payment money can’t be a gift. Does anyone have an idea how rigid is this rule and if there is a way to work around it. I did receive funds from my parents to purchase investment properties and would like to use a mix of my saving and their help.

Thanks.

[Nnabuenyi Anigbogu]

If you are buying owner occupied properties then a percentage of the DP can be gift funds. If you are buying strictly investment property however, then the best way would be to transfer the money into your account and season it for about 2 months (leave it in the account for 60 days). After that it can be used as if it is your own money.