I’m looking to purchase a home. I have enough for 20% down and I qualify for a traditional mortgage but my dad suggested he lend me the full cash to make the sale that way I have more negotiating room and can close faster. Then once I close I can refinance it and keep 20% in the house and pay my dad back for the 20%. Is there a downside to this? Will it get messy?

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Refinance rate typically is a bit higher than purchase rate, but you can probably make that up during negotiations.
Lender might question your source of funds during refinance - make sure the gift/loan from your dad is well documented.
Does your dad charge you any interest? :-)

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He wouldn’t. Which I assume would have to be added to the amount of gift

Sounds messy tax wise? Also consider how to handle if it doesn’t appraise at the refi for what you bought it.

You will also end up paying some closing fees twice - once for the purchase and then again for the refi

This is a great idea if paying in cash will get you a considerably lower purchase price. If so then definitely take him up on this!

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