Quote:
Originally Posted by Deegee
You can be lent the down payment. It falls under the flex down payment rules, just to be clear.
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Sure, there are exceptions to the general rule, but I was pretty clear in stating that the general rule is that doing what Shermanator said is improper and he admitted that he got a gift letter but that it was actually a loan. I really don't understand people trying to qualify what I said into something else.
What was described in Shermanator's post is illegal unless the bank knew and approved of the borrowed DP, that's what I said in the post you quoted.
As for AlbertGQ's assertion that lawyers would just look the other way if a client let slip that the DP was borrowed, I'd say it's unethical and foolish and I have stopped acting on transactions where this has happened. I don't see myself as some paragon of virtue but I'm not putting my career on the line for a client who is trying to pull something.
Anybody recall that BMO is currently suing 200+ people in one giant mortgage fraud lawsuit? Those defendants are lawyers, mortgage brokers, realtors, and buyers that thought they could play the system or bend the rules a bit. (Admittedly there are a bunch of bogus allegations against lwayers in terms of what they did or didn't do to protect the lender as well IMO, but that's beside the point)
At any rate, as far as I'm concerned, nothing anyone has said contradicted my point that the transaction described and elaborated upon by Shermanator is improper and shouldn't be a model for others to follow IMO. Take it for what you will...