Borrowed or Gift Funds for Down Payment

[Ryan Redenius]

Hey all - 

I'm looking to do my first investment in a 3-4 unit multi-family in Chicago.  Due to circumstances, I don't anticipate being able to occupy the building - so I'm prepared to put 25% down.

However, I spoke with a lender today and they informed me that no borrowed or gift funds would be approved for the 25% down payment.  I'm partnering with someone who is loaning me the money for the down payment, so it's by no means a gift, but I was told it doesn't make a difference. 

There is a work-around if I wait over 2 months since they won't check back that far in my account history, but I'm wondering what other options I have.  I know that investors use other people's money all the time so clearly I must be missing something...

Thanks in advance!