Is this some kind of fraud? That worries me.?

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We try to get a mortgage approval signed by the mortgage assistance NY State. We had already approved a conventional loan from our bank, but not the conditions are so good – the higher interest rates and closing costs, nämlich.Die conventional loan allows us to obtain loans against our own car (we currently have no car payments) how to use the deposit. However, it appears that the mortgage does not mean the man entgegenstehen.Mein NY, he could just give the credit check loans to his mother, and then they have a “gift” back to us (donations are acceptable sources of down payment in NY mortgages). It seems that fraud to me. I do not. I know I’ll use as a down payment on the loan. It seems that it was very clear that we gave them, and they have made. I do not think I will. Does anybody know or have any advice? And does anyone know why I can guarantee my property as collateral for loans unconventional? : – /

  1. Reply
    Laissez-Faire Guy
    May 2, 2011 at 1:58 am

    I’m not quite sure why your husband wants to take this approach by involving his mother. What’s the gain?

    You still are going to have a loan against your car and cash in hand either way.

    In any case, yes technically it is fraud. A “gift” under the law is not a gift if there are strings attached, such as you are expecting it back.

    Will you get caught. I have no idea. But technically it would be fraud of some sort.

  2. Reply
    David S
    May 2, 2011 at 2:11 am

    An auto loan to secure a home isn’t exactly safe for whichever lender is lending the money. I live in Michigan and work for a bank as an underwriter and have never heard of using a vehicle loan as a downpayment on a home. If you were to try to transform the auto loan into a gift payment and go with NY state, this would probably be somehow tracked on a mortgage document when closing at a title company.

  3. Reply
    May 2, 2011 at 2:23 am

    It doesn’t matter who “gifts” to who. The bigger picture is whose credit report is going to show a loan secured by a car? Yours, your husband or his mother?

  4. Reply
    May 2, 2011 at 2:47 am

    I’m no expect on NY, but if you take out a new debt to use as a downpayment, you’re DTI (debt-to-income) just changed and could unapprove you. An option that wouldn’t throw off your DTI is that his mom could gift you the money before closing. After closing, take out the loan on the car and gift it back (that’s assuming she can gift it without the loan).

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