Quote:
Originally Posted by onetwo_threefour
Just because people do something doesn't make it legal or right. When you sign at the lawyer's office you have to make a statutory declaration that your down payment isn't borrowed. Lying on that declaration is a criminal offense and is mortgage fraud. Saying everybody knows that people borrow their down payment ignores the fact that this is the system we rely on and people circumventing it are a big part of the problem of defaulted mortgages.
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I never said it was okay. Just that it's reality. A stat dec doesn't mean much. Plenty also buy rental properties with 5% down as second homes when it's really a rental property. Sign a stat dec claiming it's going to be owner occupied and voilą! You just bought an investment property with only 5% down