Second SFH Investment needing advice on Down Payment

[Austin Cook]

Good morning,

My parents want to buy a home for my aunt to live in for the rest of her days.  They asked me if I was interested in adding this home to my rental portfolio.  I said yes.  The house will be in my name and I will collect rent from my aunt.

Our plan was for me to purchase the house as an investment property.  Conventional loan.  20% down payment paid by my parents ($26k).

I currently have a contract on a $130k home.  Spoke to the mortgage company (local) who provided me with the preapproval letter and they now have advised me that none of the money for the down payment can come from a gift.  I only have about $20k in cash and the rest is tied up in 401k, IRA, HSA, etc.

So I'm looking for options on how to make this work.  Add my dad on the mortgage but not on the title?  Do you guys see any issue with this?

All help is greatly appreciated.

-Austin