Effect of Family Loan on Mortgage

[Timothy Olson]

I have a steady W2 and significant equity in a home. I also have excellent credit.

In speaking with my lender, I would currently be approved for approximately $325,000 mortgage on a new home (in addition to the mortgage I currently have-I plan to turn the first home into a rental).

My father is willing to give me a loan of $100,000 at zero percent interest to move into a new home. I believe the repayment terms would also be quite generous, maybe even a 30 year term.

How would such a loan be viewed by a conventional lender?