First purchase and very new to this all...

[Mandeep Randhawa]

Before I start, I am very new to all this so take it easy on me. :wink:

I currently live with my parents and am looking to buy a 4-plex. The agent is a good friend of ours. I don't have a problem with the actual 4-plex, but I do with the loan situation. I live in Sacramento, Ca. The loan guy said I need 25 percent down, which I can come up with. I will have to borrom some to get there. He stated that I will need have it in my account for 60 days before he can move forward on it. Can you folks enlighten me? I am asking around as well.

[Paul B.]

If you're not planning on living in one of the units, then yes, you're likely to need 25% down unless this is a FNMA property that qualifies for Homepath financing, in which case you could put down only 10%.

Now, as to that 25%, it's not supposed to be borrowed funds. You're supposed to have 25% equity in the property, and equity that comes from borrowed money is not really "equity" in the spirit intended.

So, your lender is suggesting that you have this money in your account for at least 60 days so that it will not be obvious that the money just "magically" appeared when you applied for the loan. That would be a clear sign that this was a loan from a third party.