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LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 37790
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I need legal advice regarding the purchase of a home in

Customer Question

I need legal advice regarding the purchase of a home in Southern California. Part of my down payment is a personal loan from a friend. The loan officer said that the funds must be documented as a gift (gave me a form). If listed as a personal debt, then I have too much debt to purchase the condo. Is there any legal way to handle it? This is time-sensitive.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  LawTalk replied 1 year ago.
Good afternoon Martha,I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today. Any loan that you take to pay the down payment on a home naturally will decrease your credit score (if reported) and will increase your debt to income ratio. This may make the lender not make the mortgage loan to you. There is no way to get around this fact, and I must warn you that declaring this loan as a gift to you would constitute mortgage fraud and subject you to potentially harsh criminal penalties---so this is not something that you want to try and hide. You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.I wish you and yours the best in 2016,Doug
Expert:  LawTalk replied 1 year ago.
This seems like a very crucial matter for you, and your questions and issues suggest that an in-depth conversation might best suit your needs. If you are interested, for a very nominal charge I can offer you a private phone conference as opposed to continuing in this question and answer thread which is searchable and viewable by the public. I am a CA licensed attorney and a former CA Real Estate Broker.If I have already provided you with the information you asked for, would you please now rate my service to you so I can be compensated for assisting you?Thanks in advance,Doug

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