How can I use gifted money obtained as a mortgage loan to apply for EB-5?

What you propose should work. You can use borrowed money, as long as you put up collateral for the loan. Your sisters would need to gift their share of the loan proceeds to you. All of you would have to show how you got the money to buy the property (legitimate source of funds).

If a loan is the source of funds for an EB-5 investment, then the collateral for the loan must be the personal collateral of the EB-5 investor.

You can use both funds for EB-5 investment purposes that are gifted as well as borrowed funds. As borrowed funds, they must be secured. If you applied for a mortgage loan and the loan was secured with property by you and your two sisters, but you are the sole borrower, and if the value of the security equals to or is in excess of the EB-5 investment amount, you should be able to use those funds for EB-5 investment purposes. Likewise, on the loaned funds, you could be the EB-5 investor and your husband benefits as your dependent or, in turn, you could gift the funds to your husband and he could be the principal investor.

There is nothing in using a monetary gift to petition for EB-5 visa program. However, if this is a loan, be ready to explain how the loan was obtained, such as providing information regarding the collateral for the loan. Furthermore, it is advisable that you should be prepared to provide information on how the money used to purchase the property itself was obtained. The essence is that you should be ready to document the process of how the EB-5 investment fund was secured and all your documentation must show the funding is legal.

If your one-thirds ownership is sufficient for the $500,000 investment you can make it work. If not, this will not work. You have to have your sister&#39s gift the property to you and then you have to mortgage it to make the full investment.

As long as you can trace your funds that your gifting to your spouse (i.e., mortgage loan document, your ownership with your sisters, their gifting of the obtained loan amount to you, etc.), this should not be a problem.

Gifts are cool. Loans secured by personal assets are cool. Chaining together loans and gifts? I would need to look at the plan and documentation.

Loan proceeds can used for EB-5 but a loan must be in your name and secured by a collateral owned in your name as the principal EB-5 investor. Property must also be appraised to show an appraised value equal to or more than the loan proceeds. Alternatively, you may gift the loaned money to your husband but loan documentation must be reviewed with the EB-5 attorney.

This can work if the loan is secured by the property.

May work if you have enough equity in the house to cover the $500,000 investment based on your one-thirds ownership. It could work.

Only one third of the loan funds are in compliance with EB-5 rules. This SOF cannot be made compliant if you do not own the entire property/collateral for the loan.

Whether you or your husband becomes the principal investor, usage of loan proceeds that is not collateralized by the property/asset that you completely or solely own is currently not allowed under the indebtedness policy of USCIS.