Using Private Money for a Down Payment

[Zak Marinko]

One of my partners mentioned that in order to be approved for a loan, your down payment cannot be a “gift.” In other words, you must have earned the capital through some legitimate means.

When hearing this, I was confused because I know people use private money when purchasing a property. Can anyone clarify that my partner is incorrect, and you can use private money to pay for a down payment?

Thanks!

[Rocco Swinney]

My understanding is you can use gift money as a down payment on a primary residence, but you cannot for investments.

From reading on here though (unless im reading it incorrectly) - i have heard folks who essentially borrower the down payment on investments properties, but im not sure how one does it? Or maybe that is more when its hard money?