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question about gift money as down-payment

A family member is providing me funds that are sufficient to qualify and cover the down payment for a house that I intend to purchase.  How long do these funds need to be in my account to pass the scrutiny and requirements of the mortgage lending organization to permit me to qualify and obtain a mortgage loan? 
  • August 05 2012 - US
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Answers (4)

They need to be in your account long enough for you to show the paper trail of money.  As long as you can show the money leaving the giftors account and entering yours in a verifiable way you are good to go!  Most lenders will require a gift letter signed by both parties and will require a bank statement from the giftors account to show that they had the money to gift and that they didn't borrow it.
  • August 10 2012
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Gift money does not have to be in your account at all. If it's been seasoned in your account for 2 full statements, meaning that it shows up in your account on the 2 most recent statements without showing a deposit, then it's not a gift, it's yours. Gift funds can be paid directly from the giftor's account at closing by wire or cashiers check or deposited or wired into your account just before closing. The key to gift funds is the gift letter and paper trailing the money back to the giftor's account and showing they have the ability to gift it.
  • August 05 2012
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A rule of thumb in our area: most lenders look at 2 months of bank statements to verify assets, any funds $50 or higher will be questioned if you are using it toward your home purchase.  As long as it is in your account prior to the statements you give to your lender you should be ok.  Your lender will ask for an updated statement prior to settlement, so I suggest not doing anything out of the ordinary.  

If you acquire the funds during the loan process, you will need a gift letter from the gifter to verify it is a gift and not a loan to be paid back.

Please ask your lender up front what they will require.  This way your are already prepaired and it won't throw a rench in your lending process and hold anything up.

Good luck.

  • August 05 2012
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The first thing I would do is speak to your lender.  Your lender will be best suited to answer this question.  I know with my clients, it wasn't so much a matter of time, it was more of -Where did the money come from?  And is there a verifiable trail?  Best wishes in your endeavors!!

  • August 05 2012
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