Many people have money to use gift funds for their mortgage down payment or closing costs that come in the from of a gift. While mattress money typically cannot be used for a down payment or gift, neither can money saved from untaxed income or funds not disclosed through a bank account. Here are some tips to understand gift funds BEFORE your apply with disclosure that you are using it:

• The gift money must come from a relative. A relative for gift funds can include
  • a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; ora fiancé, fiancée, or domestic partner.
• There gift donor must sign a letter that states:
  • specify the dollar amount of the gift;
  • 
    specify the date the funds were transferred;
  • 
    include the donor’s statement that no repayment is expected; and
  • indicate the donor’s name, address, telephone number, and relationship to the borrower.
• Verification that the gift came from the donor must show the funds coming from the donor and to the borrower in whatever way it occurred
  • A bank statement or transaction detail showing that the borrower deposited the gift funds along with the canceled check
  • Receipt of funds by the title agent or real estate agent with canceled check or wring proof
  • Proof of wire sent and received

Most loans allow gift funds easily. As long as you know what is expected, you can prepare for use of them. Call us with any questions. 239-215-3850