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Updated almost 15 years ago,
Conventional Loan ~ 20% down gift
My brother is interested in purchasing my Dads house. My dad owes 75k. House value comps out at 93K-95k. This is not an investment property this will be his primary residence. The current loans one being a mortgage the other a home equity is non-assumable plus my dad just wants it out of his name.
So my question is what is the process to receive 20% down from a family member?
The money will becoming out of a living trust which is in my mom's name. The final loan amount will be 75k so the purchase agreement will be $93,750 with a down payment gift of $18,750
My brother has good fico scores, 3 open trade lines with each line not exceeding 30% of its limit. Should get approval only tie up is the gifted 20% down payment.
Any ideas or thoughts would be great
Thank You