Borrowing money for down payment
1) From speaking to a few brokers, it sounds like many lenders have issues with borrowed money for down payment. What is wrong with this? Why can't I simply qualify for a lower mortgage taking the borrowed down payment into consideration along with my other liabilities?
2) Say I have a LOC with debt balance. Brokers/lenders will ask if I have savings. I don't understand this. No, I don't have "savings" because any money I had, I would've just put into the LOC. I can always take it out again if I need, but I wouldn't leave large sums of money just hanging out in my savings account when I can just put it back into the LOC. So how do you really differentiate "my savings" vs borrowed money?
3) To answer my own question 2, I've been told that the money has to be in your account for >90 days to be considered yours. So essentially I can transfer money from my LOC into my account, leave it for 90 days, and now that becomes my savings?
4) I know getting a "gift" from a family is allowed, as long as they declare it is truly a gift with no obligation of repayment. Is a family member allowed to "gift" you with borrowed money?