Saving for Your Down Payment: Pooling Funds From a Non-Borrower

Although there are plenty of options for those who don’t have a ton of money saved for a down payment on a home, having a decent-sized down payment is usually the best path to your real estate goals. There’s just one problem: Saving money is hard! It often takes years to save up a substantial down payment on your own. What if you don’t have that kind of time?

At MortgageDepot, we understand how difficult it is to come up with a substantial down payment. That’s why we allow our clients to pool funds from a non-borrower source to qualify for a mortgage.

Pooling Funds From a Non-Borrower: How It Works

We work with wholesale lenders that let our clients used pooled funds from a relative. Here are the highlights:

• The non-borrower must be related to the borrower, but they don’t need to be on the mortgage application for the funds to qualify.
• The borrower must provide documentation that the non-borrower has resided with them for at least the past year.
• The non-borrower must submit a written statement that they intend to live in the subject property with the borrower after closing.
• The non-borrower’s statement must include the source of the funds.
• The related person can’t borrow the contributed funds from someone else.
• The non-borrower’s statement must indicate the relationship between the borrower and the non-borrower.

Definition of a Relative

When you’re pooling funds from a non-borrower to qualify for a mortgage, the non-borrower must be a relative. What counts as a relative? Here are some examples:

• The borrower’s domestic partner
• A fiancé or fiancée
• The borrower’s guardian
• A person that the borrower is a guardian for
• Anyone related to the borrower by blood, marriage or adoption
• The borrower’s spouse
• The borrower’s child or dependent

At MortgageDepot, we get a lot of questions about whether or not a particular person is considered a relative. If you’re not sure about your situation, ask us! The answer might surprise you.

Contact Us Today!

If you’re shopping for a mortgage, make us your only stop! We have access to the lowest rates and best terms for even the most challenging financial curveballs. Connect with us today to put your real estate goals in motion!

Contact one of our loan consultants to learn more.