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Conventional Loan with Downpayment Gift

I currently own a house via an FHA loan.  Due to circumstances, we are looking to move to be closer to family.  A family member has graciously offered to give us the down payment for a new house.  

It's my understanding that the money must be "seasoned", I understand that seasoning is something along the lines of the money remaining in my account for 60-90 days.  

If the seasoning process is 60-90 days--And the MU requests 6-12 months worth of statements, will it still be considered seasoned since the money just kind of popped up one day?

What is the best way to go about obtaining a mortgage--My wife and I each have excellent credit scores, stable employment and our own money to put towards the downpayment as well.  

  • September 13 2013 - Tacony
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Answers (5)

Gift funds do NOT need to be seasoned. We would need to document a paper trail from the gift donor into your account and have the gift donor sign a gift letter. Feel free to reach out to discuss your specific scenario.
  • October 27 2014
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You can transfer the money at anytime.  You will just need to produce 60 days of bank statements to the lender to prove where the money came from. Very simple, and many folks are using gift funds to purchase these days. Hope this helps. -Chuck
  • October 23 2014
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The underwriter is only going to look for 2 months of bank statements on the worse case side.  In some instances 1 month is all that is needed.  Please feel free to contact me through my profile to discuss.  I am local to you and happy to sit down and go through everything with you.
  • September 13 2013
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A gift may be ok for Conventional Depending on the Loan to Vale. i think it needs to be equal or less than 85% LTV off the top of my head. That said, Underwriting should only request 2 months bank statements. So depending on the % of Gift/ Down Payment you may want to deposit $$ and close no sooner than 3 months. Feel free to give me a call on Monday to discuss further if you would like. Thank you. SeanP
  • September 13 2013
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For a conventional loan.  A gift from an acceptable donor (relative, Fiance, Fiancee or domestic partner) is allowed to pay closing costs or to supplement your financial reserves.  This gift could also be used down payment.

A gift must be evidenced by a letter signed by the donor (gift letter) must specify the dollar amount, date funds were transferred, include the donors statement the no repayment is expected and indicate the donors name, address, telephone and relationship to you.

A minimum borrower contribution form the borrowers own funds is not required if you are purchasing a single family home.  There are different rules if you are requiring mortgage insurance, your loan officer should be able to provide you with requirements.

The best way to obtain a mortgage is to contact a loan officer and see what you are good for. 
  • September 13 2013
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