FHA Gift Funds
Do you need FHA gift funds to qualify for your new FHA loan? FHA loans allow borrowers to be gifted their three and a half down payment money by an immediate family member. An immediate family member includes your mother, father, brother, sister, aunt, or uncle. What if you are engaged? Can your finance gift you the down payment money on an fha loan? Unfortunately, the answer is no.
How Does The Gift Funds Work?
First off, both the borrower and giftor sign the FHA gift letter. The letter states the relationship between both parties. It will also states the exact amount of the FHA gift funds. Then, the borrower writes out either a check or a cashiers check and gives the funds to the borrower. The borrower then makes a copy of the check and deposits the funds into their bank account. The donor then provides the bank with a bank statement that shows the funds withdrawn from their statement. However, the bank statement has to show the giftors name, address, and bank account information. Alot of donors do not want to provide a bank statement with their own personal bank account information. Therefore, make sure you ask your relative ahead of time if they are comfortable providing this information. Then, the borrower has to print out an online 30 day history report showing their new available balance in their account. Finally, we submit all of this information to the lender where the underwriter reviews all the necessary information for compliance purposes.
For more information go to our Fha home page at http://azwm.com/arizona-fha-loans
Better yet give us a call and talk to a licensed loan officer.
Article 1: FHA gift funds
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