Equity Arrangement

What is the name of your state? California.

I am about to take the plunge and apply for a Mortgage (my first home). As you can imagine, it's a little stressful learning about the process, and the obscene amount of money involved buying a house here in SoCal .

A family member is going to help me with a down payment, but there is some question as to how that actually works. First, they do not want to be on the loan. Secondly, we do not want the money to be seen as a gift, as there may be tax implications.

Can anyone offer any personal experieince or advice on how to proceed? Or, if it's in the best interest of both parties to have a lawyer draw up a contract? Does the lender advise on these issues?

Thanks in advance.

It will depend on your lender. Some lenders need the money to be "seasoned" meaning it is in your bank account for a certain amount of time. There are lenders that do not need "seasoning" and will not even ask you to show them where the money came from. I closed a loan last month that is exactly what you are talking about. The money went into her account 6 days before closing. The lender was Encore. I'm not sure if they do loans in California, but you might have your loan officer give it a try. If not, I'm sure your L.O. would know what lender to go through.
Good luck!!!

[HomeGuru]

Originally Posted by sammyboy

What is the name of your state? California.

I am about to take the plunge and apply for a Mortgage (my first home). As you can imagine, it's a little stressful learning about the process, and the obscene amount of money involved buying a house here in SoCal .

A family member is going to help me with a down payment, but there is some question as to how that actually works. First, they do not want to be on the loan. Secondly, we do not want the money to be seen as a gift, as there may be tax implications.

Can anyone offer any personal experieince or advice on how to proceed? Or, if it's in the best interest of both parties to have a lawyer draw up a contract? Does the lender advise on these issues?

Thanks in advance.

**A: consult with a mortgage broker.