Hi all,

Hoping someone might have some knowledge of this to help me avoid paying a lawyer or going back to my bank's mortgage consultant (feel bad in the event I don't use them for my mortgage).

I am hoping to purchase my first home in the next few months. I am potentially going to have my dad help with the down payment. It will not be a gift and will not be a loan that includes a structured repayment plan. We want to do a equity-share type arrangement if I enlist his help, whereby he will give me (i.e.) 10% of the home cost and will retain 10% ownership, to be repaid in the event of a sale or buyout option, with monthly "rent" payments made to him by me equal to 10% of the market rent value of the property.

What I'm curious about - do I have to tell potential mortgage lenders about this? Do I need any legal agreements or documents drawn up? Or can this just be kept off the books aside from him claiming my rent checks as income? When I first asked my mortgage consultant, she said as long as it is not a structured loan repayment, they don't even care or want to know about it "unless........." (can't remember the unless, something about a '2nd rights' or '2nd lien' or something....)

I'd love to just keep it between me and him, without and illegal shenanigans of course but also without needing any input from lawyers, mortgage professionals, or the IRS. Help would be much appreciated.