Borrowed funds secured by asset for down payment

[William Stinson]

Hello Everyone, I am looking to purchase my first investment property (either a SFR or condo) in the Richmond area to utilize as a short or long term rental. I currently do not have quite enough funds to cover the 20% down payment and was planning on using a family loan to help fund it. I know that this cannot be an unsecured loan so I was planning on using a lot I own free and clear as collateral on the loan but the first 2 lenders I have talked to says Fannie Mae will not accept this for investment property purchases. I have read some posts on this forum contradicting their statements so I was just looking for some clarification. Is this in fact the official Fannie Mae view or just lender specific. Any advice would be greatly appreciated. Thanks!