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Answers (8)
- Andrew Adams, "203K Specialist"
- Contributions:9349
If you are obtaining an FHA loan you should be fine. A loan (HELOC) is an acceptable source of funds as long as your parents are not requireing you to repay the funds to the HELOC.
That is not to say some lenders/underwriters will not question it or accept it. Unfortunately in the current lending enviornment Lender overlays are the rule not the exception. Your LO should be able to answer this upfront, if they can't go to another loan officer!
For a Conventional loan all you need to do is provide a copy ofvthe check along with the deposit reciept.
That is not to say some lenders/underwriters will not question it or accept it. Unfortunately in the current lending enviornment Lender overlays are the rule not the exception. Your LO should be able to answer this upfront, if they can't go to another loan officer!
For a Conventional loan all you need to do is provide a copy ofvthe check along with the deposit reciept.
- Ed Brophy, "Ed Brophy"
- Contributions:455
As others have said, it all depends on how the lenders underwriter views the money.
They may view as a true gift, or the may not because money coming from a line of credit is less likely to be viewed as a gift.
They may view as a true gift, or the may not because money coming from a line of credit is less likely to be viewed as a gift.
- Jacqueline Kounkel, "Wells Fargo Banker"
- Contributions:114
You should not have a problem with this as you are receiving gift funds and have a letter that it is not going to be repaid. As long as they are able to source the funds and prove that the funds are available you are clear.
Your parents qualified for this line and the money is available. So they have already been qualified to pay this loan back. It has nothing to do with you : )
Your parents qualified for this line and the money is available. So they have already been qualified to pay this loan back. It has nothing to do with you : )
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
There is a chance this may cause a problem due to the fact that its borrowed money. Have your loan officer check with the lender. If you haven't started with this yet, if you wish contact me with the entire scenario and I'll ask our Operations Manager. .... Rudi
- Dunes....
- Contributions:3894
Still admire the Clever way you outsmarted Zillow on the Spam rule Bobby...
- Bobby Stefano Trusted Advisor, "Bobby Stefano"
- Contributions:67
Great question. Your lender should be able to help. Experience with my clients has shown underwriters are not easy to read and rules seem to change according to the desire they want to do the loan. Stay on it and good luck!
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
I'd make a call to your lender and explain - they should be able to answer in about 30 seconds.
Regardless the fact you are receiving a gift the Underwriter will require that your parents verify where the money came from - typically they need to provide a bank statement verifying they had the money (which they don't according to your post) and a copy of the transfer to you.
Underwriters sometimes have problems with gift money that originates from a loan because they suspect it is less likely the money is truly a "gift." They make the assumption that if your parents will have to make a payment on the loan they took then there is a good chance your parents may ask you to make the payment.
You may be just fine but don't leave it to us - call your lender and tell them what's happening. They are going to find out anyway. Chances are you will be just fine.
Regardless the fact you are receiving a gift the Underwriter will require that your parents verify where the money came from - typically they need to provide a bank statement verifying they had the money (which they don't according to your post) and a copy of the transfer to you.
Underwriters sometimes have problems with gift money that originates from a loan because they suspect it is less likely the money is truly a "gift." They make the assumption that if your parents will have to make a payment on the loan they took then there is a good chance your parents may ask you to make the payment.
You may be just fine but don't leave it to us - call your lender and tell them what's happening. They are going to find out anyway. Chances are you will be just fine.
- Dave Skow, "daveskow"
- Contributions:1105
as long as its classified as a gift and as long as the program you are using allows this ..then you should be OK
Is it going to be a problem if the funds for a gift come from my parents' HELOC?
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