FHA gift questions come up often. This is where the buyer would get a gift to help in purchasing a home.
I wanted to give you the rules on FHA gift giving. Here ya go…
Acceptable gift donors for FHA loans…
1) Borrower’s relatives.
2) Borrower’s employer or labor union.
3) A close friend with a clearly defined and documented interest in the borrower.
4) A charitable organization.
5) A governmental agency or public entity that has a program providing home ownership assistance.
Unacceptable gift donors for FHA loans…
1) The seller.
2) The real estate agent or broker.
3) The builder or an associated entity.
Gifts from these sources are considered inducements to purchase, and must be subtracted from the sales price.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett