FHA Loan w/ Gift of Equity and 203K loanHi,I am trying to buy a relatives home w/ a gift of Equity Credit. I was told that for an FHA this is a non-arms length deal and so requires 15% down instead of the typical 3.5%. Is this right? If so, in this scenario would it be better to try a conventional loan so as to avoid the mortgage insurance? How would the gift of equity work with a conventional loan and would it require 20%?I am also interested in a 203K loan for renovation/rehabilitation. The house needs updating and repairs. Are these difficult to obtain? Any advice appreciated! ThanksApril 16 2013 - Vallejo00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.