What to disclose? Using a personal loan for Down payment...

[Pete Fiannaca]

Hey friends. I have sourced 3-4 private lenders (family and friends) who are willing to assist with property acquisition via private loans. This would not be for the whole price of the property, so I'm still utilizing a bank.

Using nice, round numbers, if I buy a duplex for $100K and need 25% down, am I going to run into any major snags if I come out of pocket $10K and a family member loans me $15K, or if I get private money for the whole $25K, let's say? It's great, because I've finally found funds to get rockin' and rollin', but I want to be sure that a bank is going to be on board as well.

Just a bunch of silly, process questions... 

When do I disclose? Do I have to disclose? Bank in first position with private lender in 2nd? Etc... 

THANKS!

[Mike Cumbie]

Hey @Pete Fiannaca,

Always disclose, keeps you out of hot water. It will vary by lender though and what their program requires for down. Some require "Seasoned" money or "gift letters" stating that you do not owe them any money on their contribution. You could both go in together on the mortgage and then the money won't have to be a gift. Some of the lenders on here like @Chris Mason may have much better advice than I do though.

If you end up looking for a mortgage guy and can't find one on here let me know I have a local guy who is a broker and a rock star I can point you at.