How to structure help from relative for down payment

[David Kanter]

I'm looking to buy my first property, and a relative would like to help out with the down payment, providing around $150K. That's large enough that the $14K/year IRS gift exclusion is an issue, and obviously we would prefer to arrange this so that there are no taxes paid. Here are some thoughts I had:

0. Simply pay taxes on it today. Not attractive, but the easiest thing.

1. Find a place where I can afford the down payment already and get $28K/year (relative + husband) in cash as a gift. May limit buying options, but is absolutely OK.

2. Relative (and spouse) provide money as investors, but then gifts $28K of the basis per year. Will take ~5 years to fulfill. (I think this works, but not 100% sure)

Does anyone have thoughts/feedback/suggestions? Any creative strategies that they have tried? 

Thanks,

David