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Helping a friend with a down payment

I have a friend who is currently under contract to buy a new and has his current house on the market. He doesn't have the 20% to put down in cash without selling securities so I told him I would lend him the money. He is buying his new house for less than his current house will sell and his current house is probably at 50% LTV so plenty of equity in it. He was going to roll most of the equity from the sale of his current house into his new house so he will be less than 50% LTV on the new house once his current house sells.

His loan officer said he can't take a personal loan for his down payment. Aren't there ways to structure the loan so it's not a personal loan? I can have my company make the loan and take a second mortgage on his current house? Or I can take a pledge of his brokerage account? Is there any reason why either of these wouldn't qualify?

To add, I'm not worried about him paying me back, etc. I'll have a note drawn up and if he does decide to screw a friend of 25+ years, it's not money that will change my life. Just looking to help out a friend.

Thanks!

submitted by /u/galaxydown
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source https://www.reddit.com/r/RealEstate/comments/jljksi/helping_a_friend_with_a_down_payment/
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