Richard's Real Estate Thoughts - Fairway Independent Mortgage Corporation NMLS #2289: Using gift funds for your down payment or closing costs

Using gift funds for your down payment or closing costs

Assets for closing are one of the most important requirements for your home mortgage approval. If a buyer does not have adequate funds, often a gift can help. Gifted funds are allowed with most programs, FHA, VA, USDA, and even conventional mortgage loans.

If you are using gift funds for closing costs or for the down payment, know that proper documentation of the source and the transfer of the funds is important. Documentation requirements can vary with your loan program.

Documentation requirements may involve proof of donor ability to provide the gift, proof of the transfer into the borrower’s account, and sometimes proof of the donor’s relationship with the buyer. If you are considering using a gift for down payment or for closing costs, make sure you understand the documentation required and that your donor will be agreeable to provide any documents to verify their ability.

If you have questions about using gift funds, please contact me. Proper asset documentation is important for smooth loan approval and for closing your home purchase on time.


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Richard Byron Smith
Mortgage Loan Officer
NMLS# 184479 TN# 104002 Georgia Residential Mortgage Licensee, GA#28928
Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,
Rural Development (USDA), THDA and Jumbo Loans

Cell phone: 423-280-0345 Email:  Richard.Smith@FairwayMC.com
Branch Contact: Fairway Independent Mortgage Corporation,
2115 Stein Dr, Suite 215, Chattanooga, TN  37421
Office Phone: 423-280-0345  Office Email: richard.smith@fairwaymc.com

Mortgage Loan Officer helping home buyers in Tennessee and Georgia for over 20 years.

Fairway Independent Morgage Corporation
NMLS #2289
Chattanooga, TN

Equal Housing LenderNMLS

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This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Fairway Independent Mortgage Corporation.

 Copyright ©2018 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. Georgia Residential Mortgage Licensee #28928. Fairway is not affiliated with any government agencies. These materials are not from VA, HUD or FHA, and were not approved by VA, HUD or FHA, or any other government agency. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

 

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Comment balloon 1 commentRichard Byron Smith, NMLS #184479 • September 22 2016 08:06AM

Comments

Great post Richard. Thank you for sharing. Have a wonderful 1st day of fall. 

Posted by Paula McDaniel, Voted Best of the Best Chattanooga Realtor 9 Years (The Paula McDaniel Group with Real Estate Partners Chattanooga LLC) about 2 years ago

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