Real Estate Law
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Hi, I am weighing different scenarios, there fore question is around the same lines as the previous questions. I would like to know if a kid wants to buy a rental property and is short of the 20% down payment, can parents provide a gift so the 20% is made up so he is able to buy the property. I am asking this since I was told that gifts are not acceptable for investment properties. the whole fund has to come from the individual. Is this true. Thanks
Welcome and thank you for your question. I will be the professional that will be assisting you.That would depend on the type of loan and the lender. If he qualifies to make the mortgage payments on his own. Does the lender need to know the down payment was provided as a gift?
I do not know. I just know by word of mouth that gifts are not accepted to buy renting properties.