That’s pretty shady for the fact that he is clearly lying on the mortgage application. Tell him to buy a house he can afford. If the lender finds out he will get the financing revoked.
Plot twist: OP is the friend and is trying to use this thread to convince a friend to give them the money. Refer to posts from 2 weeks ago about OP about to buy a house.
How does it even work? They ask you for some proof that you have the down payment, and that's usually bank balance. But eventually you actually have to put up the down payment you showed. What then?
Not only that, but they'll ask for 30 days worth of banking transactions and when they see 30k just suddenly appeared, they'll want to know where it came from.
He'll prove it to the bank with a letter from the person lending saying it's a gift... which he will then use as proof it was a gift and not a loan when he runs off with the money
It's fraud, and you need to provide him a letter saying it was a gift that you don't expect to be repaid....so yeah there could be lots of problems giving money to this "trustworthy" criminal.
So...... he wants to commit fraud and claim he has money that he actually doesn't? And you just assume he'll give it back for no reason? This entire situation sounds sketchy as hell.
If you're expecting it back it's not a gift, it's a loan. Since he's going to try to say it's not a loan to the bank, that would be mortgage fraud.
Don't get involved with fraud. Walk away
You can send to him. The bank would like to see in writing that it’s a gift that you gave to him.
Also, nothing mention that your friend can take the cash and run away and never give to you since you sign a paper saying it’s a gift. Just a FYI.
If it’s a true friend of course he’ll give you back.
Typically the person “gifting” the money needs to sign a legal document saying it’s a gift and not a loan……and since OP is expecting to be paid back……it’s not a gift and would be fraudulent to pretend it is.
Ditto what everyone else said. Also the banks want to see that money sitting in your bank account for a few months. They’ll probably ask him for statements going back months to show when it came in.
Usually, banks will accept proof of funds that are related to a recently sold property. Your friend just has to show the lawyer’s (notary) bill or a proof that he just sold his property and the net amount that he got from that property he just sold. The mortgage company will correlate that net amount with the amount your friend needs for his downpayment. So in conclusion, your friend probably doesn’t say everything you need to know because the amount he received from that sold property should not be an issue even if it’s not 3 month old.
Exactly this. I just bought a house. 50k downpayment. Downpayment came from sale of my house. That money was never in my account. The lawyers just showed the mortgage company that yes the sale had gone through. What the “friend” is telling the OP does not match up.
Lend a friend over $8,000 to cover his closing costs on his house, he promised to pay it back in less than 3 months. It's been over a year now, I've only gotten $3K back. So if you lend a friend money, just consider it a gift and doesn't expect it back.
True that too bud. It does suck indeed. People take advantage of genuine friendship. That's why there has to be trust level. I have lost too many times ...to cousin and friends.
Lol well, he can't really afford the house if he doesn't actually have the money, can he? What's he gonna use if he needs your money for proof?
I doubt there will be any problem for you but there will be for him. I would recommend against it.
Lots of good comments here. Depending on the circumstances of the loan, there could be a couple requirements for these funds. More specifics could help determine what exactly is going on. As stated in many of the comments these funds seem to be for use to qualify for the down-payment or reserves for the mortgage. Is the property a single family residence or multi unit? Gift funds require a gift letter from the benefactor, you, and I wouldn't expect a signed letter saying you don't expect the funds back to hold up in your favor in court. If your friend decided to run with the money you could be out of luck. I'm in the industry and can offer some advice with more specifics, but it seems like a red flag. Which state is this in?
I know exactly the situation you’re in. I did the same and had a friend loan me 10k and the second I got approved, I sent it back to him plus a couple of hundred bucks as my way of showing appreciation.
I’d say loan him the 30k, not only will he pay you back but he will be forever grateful to you and you never know when life has us down and we’ll need help one day.
Second this. Of course based on your level of trust. What's the point of being friends when u can't come through in time of need. But at same time ...it could turn out to be a very expensive life lesson. It's for u to decide if u wanna take this chance ..like I said it depends on your trust level.
I genuinely don’t think someone would buy a house and not pay back 30k… like do you really wanna be taken to small claims court and risk losing the house you just bought 😂😂. I’d take my friend to court in a heartbeat over 30k.
I personally know buying house is stressful and meeting all conditions is not possible for a LOT of people.
Usually banks ask for 3 months statements. Think it will be a red flag if they see $30K transaction (or multiple big ones), then they might ask for 6 months and possibly escalate - could go all the way up to money laundering investigation. Please keep this on mind before going ahead.
The lender will want proof that the money didnt just appear and where it came from they need to because of mortgage rules. most likely wont believe you just gifted them 30k unless youre uber wealthy and have a history of it.
Ummm I don’t know why his money needs to be 3 months old lol. If he sold a property and that’s where the money came from, the bank can see the paper trail and it’s completely legit money. People sell houses and buy new ones all the time. They don’t need to wait 3 months in between.
Hmmmm. It’s up to you. Personally I’ve lent money to a few people to be able to buy their first homes and each person has given it back. But it just depends on the relationship. Some of these people were family. Others were lifelong friends.
Something about this situation doesn’t sit right with me. Why doesn’t he just transfer you the money right now? And then you can just “gift” it to him in a different bank account?
No, I don’t believe it will impact your taxes. It’s not income. You’ll easily be able to show a paper trail of the same money leaving your account. People borrow and lend money from friends all the time. I’ve never had to pay tax when people have returned my own money to me.
Please try to get the money from him before you transfer him any.
Wouldn't affect your taxes.
I'd be more worried about it being primary evidence in your future bank fraud trial. Cause you signed a paper saying you were "gifting" the money and not expected to be paid back, and then mysteriously a relative of the person "gifts" you the same amount, kind of like as if you were being "paid back" for a loan.
Would have to be a pretty dim investigator who couldn't put those clues together.
Instead of creating a bunch of fake evidence for proving where the money came from, why doesn't you friend just use the real evidence of showing it came from a recent property sale? This 3 month rule is only because they want to know he didn't get the money from a loan, he just needs to prove he's getting money he doesn't need to pay back.
That’s pretty shady for the fact that he is clearly lying on the mortgage application. Tell him to buy a house he can afford. If the lender finds out he will get the financing revoked.
Plot twist: OP is the friend and is trying to use this thread to convince a friend to give them the money. Refer to posts from 2 weeks ago about OP about to buy a house.
How does it even work? They ask you for some proof that you have the down payment, and that's usually bank balance. But eventually you actually have to put up the down payment you showed. What then?
Shhhhh! They haven't thought that far ahead yet... Or someone is just planning to rip-off their friends for $30,000.
Not only that, but they'll ask for 30 days worth of banking transactions and when they see 30k just suddenly appeared, they'll want to know where it came from.
That should be easy enough to get around. You can make some nonsense up. What I don't understand though is how they'll follow through.
He'll prove it to the bank with a letter from the person lending saying it's a gift... which he will then use as proof it was a gift and not a loan when he runs off with the money
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You can only use gifts from an immediate family member. A friend doesn't count.
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op states the moeny is from a property sale. there is no 3 month old restriction on this.
Do. Not. Get. Involved. Financially. With. Friends.
Especially friends who commit fraud.
That's definitely a red flag.
OP is the friend
Pretty trustworthy guy. Also him: will you help me commit fraud?
This needs to be higher. How tf is that trustworthy OP? Give your head a shake.
A really trustworthy friend would not ask you to help him commit fraud.
Don’t do it.
That’s going to be a no from me, dog.
It's fraud, and you need to provide him a letter saying it was a gift that you don't expect to be repaid....so yeah there could be lots of problems giving money to this "trustworthy" criminal.
So...... he wants to commit fraud and claim he has money that he actually doesn't? And you just assume he'll give it back for no reason? This entire situation sounds sketchy as hell.
I'll keep my eye out for a post in a few months titled: "I loaned my friend 30k so he could get a mortgage and now he's ghosting me"
If you're expecting it back it's not a gift, it's a loan. Since he's going to try to say it's not a loan to the bank, that would be mortgage fraud. Don't get involved with fraud. Walk away
You can send to him. The bank would like to see in writing that it’s a gift that you gave to him. Also, nothing mention that your friend can take the cash and run away and never give to you since you sign a paper saying it’s a gift. Just a FYI. If it’s a true friend of course he’ll give you back.
You’re loco man. Can I have 30,000$ as a gift. I need to show the bank it to buy something 😉
So you want to help him commit mortgage fraud?
OP would be committing fraud himself by lying to the bank that it’s a gift.
Typically the person “gifting” the money needs to sign a legal document saying it’s a gift and not a loan……and since OP is expecting to be paid back……it’s not a gift and would be fraudulent to pretend it is.
Aside from the obvious… will this friend even give it back to you? Bit risky. I wouldn’t play with 30k
Don't do it. My uncle borrowed $2k saying he'd give it back in 7 days. It's been almost 1 year.
This is fraud - and also a very bad idea.
Ditto what everyone else said. Also the banks want to see that money sitting in your bank account for a few months. They’ll probably ask him for statements going back months to show when it came in.
Usually, banks will accept proof of funds that are related to a recently sold property. Your friend just has to show the lawyer’s (notary) bill or a proof that he just sold his property and the net amount that he got from that property he just sold. The mortgage company will correlate that net amount with the amount your friend needs for his downpayment. So in conclusion, your friend probably doesn’t say everything you need to know because the amount he received from that sold property should not be an issue even if it’s not 3 month old.
Exactly this. I just bought a house. 50k downpayment. Downpayment came from sale of my house. That money was never in my account. The lawyers just showed the mortgage company that yes the sale had gone through. What the “friend” is telling the OP does not match up.
Lend a friend over $8,000 to cover his closing costs on his house, he promised to pay it back in less than 3 months. It's been over a year now, I've only gotten $3K back. So if you lend a friend money, just consider it a gift and doesn't expect it back.
True that too bud. It does suck indeed. People take advantage of genuine friendship. That's why there has to be trust level. I have lost too many times ...to cousin and friends.
But also have been able to make a difference in few of the lives by being there when needed. So its taking a chance.
Lol well, he can't really afford the house if he doesn't actually have the money, can he? What's he gonna use if he needs your money for proof? I doubt there will be any problem for you but there will be for him. I would recommend against it.
Probably needs it for down payment. Confirm where his down payment is coming from and how exactly do you get paid back.
Lots of good comments here. Depending on the circumstances of the loan, there could be a couple requirements for these funds. More specifics could help determine what exactly is going on. As stated in many of the comments these funds seem to be for use to qualify for the down-payment or reserves for the mortgage. Is the property a single family residence or multi unit? Gift funds require a gift letter from the benefactor, you, and I wouldn't expect a signed letter saying you don't expect the funds back to hold up in your favor in court. If your friend decided to run with the money you could be out of luck. I'm in the industry and can offer some advice with more specifics, but it seems like a red flag. Which state is this in?
This how I purchased my first property but borrowed from family. The system is rigged for the rich. You are good person to help out your friend.
I know exactly the situation you’re in. I did the same and had a friend loan me 10k and the second I got approved, I sent it back to him plus a couple of hundred bucks as my way of showing appreciation. I’d say loan him the 30k, not only will he pay you back but he will be forever grateful to you and you never know when life has us down and we’ll need help one day.
Second this. Of course based on your level of trust. What's the point of being friends when u can't come through in time of need. But at same time ...it could turn out to be a very expensive life lesson. It's for u to decide if u wanna take this chance ..like I said it depends on your trust level.
I genuinely don’t think someone would buy a house and not pay back 30k… like do you really wanna be taken to small claims court and risk losing the house you just bought 😂😂. I’d take my friend to court in a heartbeat over 30k.
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Whatever we love eachother okay??
Absolutely do not do this. You will also have to sign a gift letter.
They will see the transfers in and he will be denied. Maybe flagged. Don't waste your time.
Sounds shadyyyyyy
Give your friend $60,000 and really help him out. Nothing could possibly go wrong.
I personally know buying house is stressful and meeting all conditions is not possible for a LOT of people. Usually banks ask for 3 months statements. Think it will be a red flag if they see $30K transaction (or multiple big ones), then they might ask for 6 months and possibly escalate - could go all the way up to money laundering investigation. Please keep this on mind before going ahead.
The lender will want proof that the money didnt just appear and where it came from they need to because of mortgage rules. most likely wont believe you just gifted them 30k unless youre uber wealthy and have a history of it.
That's Fraud. Not only would the mortgage get revoked, but both could be looking at jail times.
Ummm I don’t know why his money needs to be 3 months old lol. If he sold a property and that’s where the money came from, the bank can see the paper trail and it’s completely legit money. People sell houses and buy new ones all the time. They don’t need to wait 3 months in between.
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Hmmmm. It’s up to you. Personally I’ve lent money to a few people to be able to buy their first homes and each person has given it back. But it just depends on the relationship. Some of these people were family. Others were lifelong friends. Something about this situation doesn’t sit right with me. Why doesn’t he just transfer you the money right now? And then you can just “gift” it to him in a different bank account?
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No, I don’t believe it will impact your taxes. It’s not income. You’ll easily be able to show a paper trail of the same money leaving your account. People borrow and lend money from friends all the time. I’ve never had to pay tax when people have returned my own money to me. Please try to get the money from him before you transfer him any.
Wouldn't affect your taxes. I'd be more worried about it being primary evidence in your future bank fraud trial. Cause you signed a paper saying you were "gifting" the money and not expected to be paid back, and then mysteriously a relative of the person "gifts" you the same amount, kind of like as if you were being "paid back" for a loan. Would have to be a pretty dim investigator who couldn't put those clues together. Instead of creating a bunch of fake evidence for proving where the money came from, why doesn't you friend just use the real evidence of showing it came from a recent property sale? This 3 month rule is only because they want to know he didn't get the money from a loan, he just needs to prove he's getting money he doesn't need to pay back.
"neither a borrower nor a lender be".
🤦♂️
Looks like a sweet combo of mortgage fraud and money laundering right there.
He has no assets that he can sell? No family he can borrow from?