Down Payment From a Relative and other Complications

By
Mortgage and Lending with First Priority Financial
I have a client who is wanting to purchase a house. He has a good job and his DTI will be fine. The thing is that he has no money for a down payment or closing costs or any assets in the bank. Fortunately, however, he has a relative who is willing to pay the closing costs and down payment up to 20%, which is wonderful, but to qualify him as full doc don't I need him to have some seasoned assets. Do the lenders care about seasoned assets in this situation. Please advise. My refinance skills are better than my purchase skills. It's a conforming loan. Thanks in advance.

Comments (2)

Rick Kellow
Cherry Creek Mortgage - West Bend, WI
FHA & Reverse Mortgage Expert

Most lenders are concerned about sourced assets vs seasoned... most times a gift letter will do...

Rick

Mar 13, 2008 09:23 PM
Allen Sayble
First Priority Financial - Ashland, OR

Tbanks Rick,

Do the major A paper lenders care about seasoned or sourced assets? Are there some lenders out there to avoid if the assets are not seasoned buy only sourced?

Mar 14, 2008 05:34 AM