Posted by John Merchant on January 10, 2003 at 11:36:40:
It just dawned on me what you’re asking.
If anybody applies for a new loan, and in the process, states in writing that there is a 10% cash downpayment, when there is NO cash downpayment (gift of equity, etc.), that is a felonious and fraudulent mis-statement of fact and is a BIG NO,NO.
People have gone to prison for this very thing, so you probably want to avoid getting into that situation.