“Can you borrow the money for the down payment on a home?”
It depends how and when you borrow the money.
Generally, banks only want you to borrow from a secured asset: HELOC, car loan, savings account loan, 401-k loan, etc. They don’t like personal loans that are not secured by an asset of some kind.
However, an unsecured personal loan may work if you borrow the money well in advance of your purchase. It has to get on at least two of your bank statements before it’s “seasoned” enough to be considered yours and not money borrowed just for a purchase.
One more thing…
The rules for borrowing money from family are no different than any other unsecured loan.
However, the family member can “gift” you money towards your down payment. That way it’s not a loan. They’ll need to write a “gift letter” saying that they don’t expect repayment.