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Replies (7)
- wetdawgs
- Contributions:26804
Many lenders require that you have a portion of your own money in the deal. A few will accept the gift (with full documentation that it is truly a gift). Please be aware that you or your aunt may be liable for taxes on the gift if it exceeds the IRS guidelines for annual gift amount.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3220
Could not be more wrong about it being different for direct lender vs correspondent lender vs broker. Now if you do not have 5% of your own funds to put into the transaction, you may have other issues but all that can be explained by a experienced mortgage professional that knows what he/she is doing. Where are you located.
- Justin Kennedy
- Contributions:692
20% down from Gift does not require any down payment contribution from buyer. If less than 20% down payment then Buyer needs to supply 5% of their own funds per Fannie and Freddie guides. In addition the buyer needs to identify the PMI requirements as well. In this market they tend to be stricter than the GSE's (Fannie Mae and Freddie Mac).
no matter how you cut-it: gift funds you will need executed gift letter, donors ability to gift, copy of gift check, and deposit into escrow acct or deposit into buyers banking account showing proof of the deposit. Some may be less but good to have it all upfront.
- avanst180
- Contributions:5
I am trying to buy a house in Connecticut. The whole 20% down payment would be from my aunt, so none of the funds would be from me.
My credit in great shape and I make more then enough to cover any ratios for the price range I am looking in.
The Mortgage broker I am going with, said that getting a mortgage shouldn't be a problem as long as I am putting down at least 20% with the gifted money. He also said if it is less then 20%, then I would have to fund 5% from my own money. I just wanted to make sure that I am not going to have a problem getting a loan from a mortgage broker with gifted down payment.
Thanks for the replies!
My credit in great shape and I make more then enough to cover any ratios for the price range I am looking in.
The Mortgage broker I am going with, said that getting a mortgage shouldn't be a problem as long as I am putting down at least 20% with the gifted money. He also said if it is less then 20%, then I would have to fund 5% from my own money. I just wanted to make sure that I am not going to have a problem getting a loan from a mortgage broker with gifted down payment.
Thanks for the replies!
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
The advice you were given based on your last post is entirely correct. As long as you will occupy the property 20% all gifted is perfectly acceptable.
As Joe mentioned, to say a broker would have different rules than a direct lender on this topic is complete rubbish. The only sceanrio where brokers are sometimes at disadvantage to lender is when PMI is required, but in your case with 20% down, it is not an issue and your broker should have no trouble at all getting your loan done for you.
As Joe mentioned, to say a broker would have different rules than a direct lender on this topic is complete rubbish. The only sceanrio where brokers are sometimes at disadvantage to lender is when PMI is required, but in your case with 20% down, it is not an issue and your broker should have no trouble at all getting your loan done for you.
- Clay Branch, "Georgia Loans"
- Contributions:7835
Is that information from the same lender that would not give you a GFE? Name the perp, what company do they work for?
- Jonathan Blackwell, "JonathanBlackwell"
- Contributions:19
You have to have 5% of your own money. Period, those are the rules.
Conventional Mortgage with gifted 20% down payment
This is his exact email:
"Also…make sure this company you are going with is a direct lender…not a broker…not a correspondent lender…or you will have allot of difficulty with documenting the gift funds…and meeting secondary investor guidelines....."
My question is, is what he is saying correct?
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