We are considering her withdrawals by the money and gifting it to me to add to the reserves.

Originally posted by @Zachary Dooley: The #s came out great at the endThen be happy you got a good deal, offer an extra $1k to the seller to make the lender required repairs, and close on it.Also send your Realtor a very nice thank you card and gift card so he can take his family out to dinner.

Right now i have a very good credit score in the 700s but very little capital to invest with and I doubt family / friends would or even can afford to loan/gift capital.

So if you can save or have gifted the required 3.5% down on your next property then do everything you can down that route. 

Once we've fluffed the house a bit, we will refi, pay off the HELOC, and go around again.All of the delayed financing options I've found specifically state that any cash from a third-party must be a gift, and you absolutely cannot use the proceeds to pay off a private loan for the original purchase. 

Rayven, gifts are not allowed for a conventional investment property loan.

On the other hand, the down payment for a primary home must be from your own resources (own savings, heloc), can be gifted but not borrowed. 

One of the greatest gifts is to give away knowledge with no expectation of return.

That could be helping them in return or giving them a small gift as a thank you.

@John Buffet, you'd need to ask a mortgage professional, but depending on your price point, I believe the FHA allows gifting for some or all of the down payment.