My sister-in-law experienced something akin to this, and learned the hard way. She was looking to buy a $150K house, for which she did have the income to qualify for the $120K loan after putting down the required $30K. She borrowed the down payment money from her mother and deposited it in her savings account. When the bank pulled her credit report and other financial information, they of course asked about the sudden $30K increase in her net worth. It didn't matter that she had the income to afford the payments. Her loan application was disapproved. It was a real effort for me to hold my tongue and not say, "I told you so." 🙂
