Zillow Advice: Buying Process - Gift from parents towars closing costs

Hello all , Does anybody ...

Tue, 07 Apr 2009 17:03:00 GMT

Hello all ,
Does anybody know if the down payment gift money can come from a non-relative? Of course with the enclosed letter and bank statement of the person who will give the money?

Thank you

Hello all , can the down ...

Tue, 07 Apr 2009 17:01:00 GMT

Hello all ,
can the down payment gift money come from a non-relative?

Thank you

The gift tax limit is $12000 ...

Wed, 18 Feb 2009 10:51:00 GMT

The gift tax limit is $12000 per year. The donor is the one that pays the gift tax if the gift exceeds $12000. If you are married your parents can give $12000 to you and $12000 to your spouse (24k) tax free. If you do this in advance (say in your bank account for several months before applying for a loan, you will not need a gift letter or have to declare the funds a gift. This is all perfectly legal.

how big are they?

Wed, 18 Feb 2009 09:53:00 GMT

how big are they?

Thank you for your answers. ...

Wed, 18 Feb 2009 08:47:00 GMT

Thank you for your answers. I will provide a gift letter as you suggested. I have one more question. I have repayments of hand loans that I gave to friends. What would be the procedure to document these during the closing process? Do i have to get their bank statements and letter verifying that as well?

your parents can gift you ...

Wed, 18 Feb 2009 08:39:00 GMT

your parents can gift you money directly, with no expressed purpose that you can use then for the down payment without declaring it as a gift in the loan docs... the catch is you have to pay taxes on the gift... is that true either way? i do not know.

Not only will the gift letter be ...

Wed, 18 Feb 2009 08:34:00 GMT

Not only will the gift letter be required, but a complete sourcing of the funds will also need to be documented including the bank accounts where they came from and proof that the person gifting said funds has the ability to do so.

You will absolutely be required ...

Wed, 18 Feb 2009 07:46:00 GMT

You will absolutely be required to supply a gift letter to the bank to close on the loan but, it is not necessary to mention it to the sellers of the property in the offer. The bank will require it though regardless of which one you are working with.