Using private money for down payment

[Ryan Keenan]

Hello BP, in using private money for a 20% down payment, won't the banks be questioning where this money came from once they ask for your last 30 day bank statement and see a large chunk of money deposited ? Are there ways around this?

Thanks!

[Paul Khazansky]

It really depends on the bank. If it is a conventional BofA kind of bank, they will often want to see "seasoning" of 2 to 3 months.  We, as a private lender, do not necessarily care about seasoning because whether it is a gift or a loan, the lender is secured by first lien position on the underlying real estate.