Were you thinking you might need a gift for the down payment when you get a mortgage?
I wanted to go over the gifting rules for FHA and Conventional loan programs…
Conventional:
· If the gift is less than 20% of the purchase price, then the borrower still has to have 5% of the purchase price from their own funds.
· The giver of the gift will have to provide bank statements that show they had the ability to give the gift.
· Gifts from a spouse or finance are not considered to be gifts, but are considered your own funds.
FHA:
· The whole 3.5% down payment can be a gift from a relative.
· The giver of the gift will have to provide bank statements that show they had the ability to give the gift.
· You can also borrow your down payment from a retirement account.
That’s it for today.
Thanks for reading! …and, have a great day!
Brett