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leeelliot61 · Joined: 13 Sep 2009 Posts: 188 0.01 Dollars($)

Can I use gift funds as a down payment?

savior70 · Posted: Wed Nov 04, 2009 6:15 am Post subject:

Hi,

You can surely use gift funds as down payment. The gift funds should not have any repayment obligations attached to them. It means the donor should give you the money, without requiring you to pay it back.

gunzijjistaff · Joined: 07 Apr 2009 Posts: 712 4.51 Dollars($)

You can use gift money for make payment for your loan due. But this money will not be considered in your income. As savior say you have to prove that this money is gift money.

Thanks.
gunz.ijjistaff. Laughing

sonjakracine · Joined: 24 Oct 2007 Posts: 77 15.05 Dollars($)

Only on an FHA loan and only from family members.

jveenstra · Posted: Wed Nov 04, 2009 9:26 am Post subject: Gift Funds

The minimum down payment for an FHA mortgage is 3.5% and gift funds can be used for that 3.5% down payment.

For Fannie Mae and Freddie Mac mortgages, if the gift funds are 20% or more of the purchase price, you do not need any of your own money for the down payment. If the gift is less than 20% of the purchase price, you will need to make a down payment of at least 5% of the purchase price from your own funds before the gift.

Guest

Can you use gift money as a down payment for a conventional loan on a home?

jveenstra · Posted: Fri Feb 11, 2011 7:05 pm Post subject: Gift

Yes

If the gift is all 20% of a down payment, you do not need any money of your own.

If the gift is les than 20% of a down payment, you must verify that you have at least 5% of the purchase price in your own funds.

The source of the gift and the receipt of the gift must be documents (Gift Letter is a standard item)

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