Need help with loans on home purchase

[OnlinePro]

Ok here is the story. I am purchasing a home for 1.2 mill.

I want to pull out equity from my fathers house for the down payment for this new house. ( 200,000 ) His house is worth over 800,000 and he owes barely anything on it.


For the purchase of the new house I will be doing a 7 year interest only with 20% down. will the lender have a problem with my father putting up the money for the down payment but not being on the title ?

What is the best way to do this tranaction without having my father be on the title of this other property.

[OnlinePro]

Also wanted to add that I have 750 credit score and it will be stated income loan.

[ShineOn]

If the bank asks you where you are getting the money for downpayment - tell them you are getting it from you father. They will most likely ask that he provide a "gift letter" stating that the money does not need to be repaid. Either that or they will require evidence of your repayment terms - in this case, you must be able to support the debt in addition to your own mortgage debt, credit cards, auto loans, etc. I would make sure you understand the tax consequences before choosing either option.

To make your life easier, have him pull the equity out of his house, write you a check, then you deposit into your accounts and provide evidence that YOU have the money if they ask. Your agreement with your father is then your business...not the banks.