All Forum Posts by: Frank Leone

@Jay Hinrichs I guess I just dont understand why you can be gifted money for a down payment and that's fine. But if you were to borrow money from a friend that it would be wrong.

@Wayne Brooks Ok thank you. I was not understanding. Why is it you cant borrow money from a friend and use that as a down payment? But can use gift money?

@Jeff Cagle I guess I dont fully understand then. Please inform me so I'm not doing anything wrong.

@Jeff Cagle Lying on a mortgage document is way different. I'm trying to understand how a person who had been saving there cash for a period of time could then deposit that cash and get a mortgage using that cash I just deposited for the down payment on a home.

@Travis Henry But then if someone had saved let's say 8000 over a period of time without being able to provide source. That person then said hey I want to buy a house. They put the money into there account. They then wait three months. Your saying the bank could say sorry you cant get a loan because you cant prove where that 8000 came from? Even if it's only 1/3 of that persons total net income for a year?

@Christopher Phillips When you say income are you talking about the average income I make per year? If so the amount I'm talking about is very much less.

@Jeff Cagle Im not trying to commit a crime. Im trying to understand how the banks operate. I have contacted several loan officers to understand the inner workings of the bank. They have told me that what I'm trying to accomplish is in fact legal. Most people dont even ask these questions. The fact that I even asked these professionals was shocking to them. The fact that not many people know these things. Most people run into the bank with money they have been saving in cash and think they can do anything. When in fact you cant. I ask these questions to become a knowledgeable investor.

Hey guys just some quick questions. I am looking to buy my first duplex which I will rent out one unit and live in the other. I will be going for an FHA loan 3.5% down. #1 - What I'm wondering is if I were to borrow money from a friend how would I be able to get a mortgage without the bank knowing that I have borrowed the money? #2 - If I borrowed the money and had it deposited into my account how long would it need to sit there for the bank to say it's my money and not question where it came from? For all they know it's just mattress money. Thanks

@Hadar Orkibi Yes I would have an attorney come up with a legal document. It would spell out that I will be paying him X amount each year for 4 years until he receives all his money back. As long as I have the money, good credit, and job history getting the loan shouldn't be an issue.

@Hadar Orkibi All the money is coming from someone else. Nothing out of my pocket.