Hi I was wondering if you could help me. I have seen a house valued at 132k, however cannot afford the house as have no deposit. The seller is willing to accept 110k. I have been told by my bank that I could put in an offer of 110k. So my purchase price would be 110k my offer of loan would be 110k and my deposit would be 22k if we had a deed of gift (legal document) also known as a concessionary gift advising how much valued (132k) and how much purchase price is (110k) difference is 22k. So the seller would still be getting what they want for the house and we can get the deposit this way as well. Can you please advise if possible as mortgage advisor advised of this, but solicitor not sure?

Thanks:)

Hello k:

I think you're confused, or we're not talking about US laws...

You're not going to fool the bank into believing that you put down $22k because the seller discounted the house by that much. You're still applying for a loan of $110k with NO down payment, and the bank isn't going to DO that.

I also don't understand why you think the seller is getting his asking price. Please tell us how this "deed of gift" is going to help the seller... Can he SPEND it at his grocery store?? I don't think so. Can he use it to get a deduction on his taxes?? Nope.

excon

Yes plese tell us where you are at, since obviously this is not the US