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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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john 57, i don't have anything specific that i can recommend you say to your mother in law, but let me just lay out some things that may help her feel better about it.
first and perhaps most important for her, immigration authorities are not going to learn about the gift. the reason lenders look for verification that the donor of a gift has the funds intact already is to allow certainty that there's nothing odd about the transaction. as for what is "odd" i think i would include funds that she might have borrowed to give to you; a suddenly larger than usual deposit that goes into her account that resulted in her gift to you; a deposit equal to the gift being given that corresponds with funds withdrawn from one of your accounts...things like that.
lenders need to be secure that you have no need to pay the gift back, and that the donor is financially secure enough to be able to grant such a gift.
the documentation gathered stays in the loan package. the loan package doesn't go to the irs, immigration, the white house, congress, rush limbaugh or any of those entities that might strike fear into her heart.
i don't know of any act or statute that i could cite which would ease her discomfort, but if any or all of the above can be of assistance, i'm pleased.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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john 62
Guest
0.10 Dollars($)
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Post subject: down payment money |
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mom gifted daughter $12,000. daughter uses money as part of down payment. mom signs letter stating gift. mom also provides proof of $80,000 CD from which money came. mortgage company also wants bank statement. this seems excessive. family lawyer, who is not specifically versed in real estate, advises against it. help!!!
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Hi john!
Welcome to forums!
The bank will ask your mother to provide the bank statements. However, as your mother has provided the lender with proof of $80,000 CD from which money came, the lender shouldn't have asked for any more proof. You may ask the lender why he needs further proof.
Feel free to ask if you've further queries.
Sussane |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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i think sussane made a good point, in that the provision of the cd ought to be sufficient for what the lender needs. however, there must be more to it than that, so inquiring further is essential so you can understand just what they're driving at.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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john 62
Guest
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Post subject: mortgage requirements |
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| thx to sussane and george for your help - much appreciated - j |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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Post subject: |
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you are welcome.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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private
Guest
0.10 Dollars($)
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Post subject: gift letter |
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| what do they do to the gift letter and also do i need to report or pay any taxes on that money? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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Post subject: |
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the gift letter becomes a permanent part of the loan file. for tax questions, you ought to consult with your tax advisor (if any) or check with the irs directly. taxation generally depends on the extent of a gift.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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mecca
Guest
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Post subject: Tax purposes and gifts |
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| If I gift 90K to my fiance to purchase a house, how does this affect both of us both for taxes? |
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Hi mecca!
Welcome to forums!
You would be liable for paying gift taxes if you make a gift of 90k to your fiance in order to purchase a house.
Sussane |
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L. Carter
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Post subject: gift letter |
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| The amount of the loan is $100,000.00 . Family is buying from family. Can the gift letter for the down payment be given by a family member that owns equity in the home and is using the equity for the amount of the down paymen? Also, does it lower the amount of the loan or does the loan stay at $100,00.00? Please advise.. |
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fed up
Guest
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Post subject: gift letter |
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| I am giving a gift to my daughter for a mortgage. It will be a cashier's check, and I will write a letter stating it is a gift and I don't want repayment. Why do I need to show a paper trail of MY money when it is a cashier's check? I am not the one appling for the loan. It is not their business where I got the money, only that it is a gift. I resent this. Is it necessary? |
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Niicss
Joined: 03 Oct 2005
Posts: 4770
Location: New Jersey
499.28 Dollars($)
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To L.Carter,
I think the person who owns equity in the property will be able to issue a gift of equity letter to the person purchasing the property. If you pay 20% down payment, then it will definitely lower your loan amount by that percentage.
To Guest,
It is necessary to give the proof of the fact as to where your daughter received the money from. As a result, you'll have to show a paper trail of your money.
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Good is the Enemy of Great. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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sorry, fed up, but it is a necessity. do you recall how there was so much fraud in the marketplace? that led to what you and many others consider ridiculous rules that force folk like you to divulge the source of their own funds that are being used for gifts. unfortunately, it's the way of the mortgage world now, and your daughter is going to be up the creek if you decide not to cooperate with her lender. they want to be sure that the donor of gift funds has the wherewithal to provide said gift. i understand your point, but the world of lending has changed, and not necessarily for the better.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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Oscar1983
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Post subject: Gift |
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| Can the seller assist the buyer with a " gift" for the downpayment of the purchase? |
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