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| Dinner Bell Winner Winner Chicken Dinner |
Does not permit gifts to be given
the day of closing. All gifts and the respective required
documentation to be received prior to closing.
Below are gift guidelines for FHA and conventional.
FHA
(3) Required Documentation The Mortgagee must obtain a gift letter
signed and dated by the donor and Borrower that includes the following:
·
the donor’s name, address,
and telephone number;
·
the donor’s relationship to
the Borrower;
·
the dollar amount of the
gift; and
·
a statement that no
repayment is required.
Documenting the Transfer of
Gifts
The Mortgagee must verify
and document the transfer of gift funds from the donor to the Borrower in
accordance with the requirements below.
·
a. If the gift funds have been verified in
the Borrower’s account, obtain the donor’s bank statement showing the
withdrawal and evidence of the deposit into the Borrower’s account.
b. If the gift funds are not
verified in the Borrower’s account, obtain the certified check or money order
or cashier’s check or wire transfer or other official check, and a bank
statement showing the withdrawal from the donor’s account.
If the gift funds are paid
directly to the settlement agent, the Mortgagee must verify that the settlement
agent received the funds from the donor for the amount of the gift, and that
the funds were from an acceptable source.
If the gift funds are being
borrowed by the donor and documentation from the bank or other savings account
is not available, the Mortgagee must have the donor provide written evidence
that the funds were borrowed from an acceptable source, not from a party to the
transaction.
The Mortgagee and its
Affiliates are prohibited from providing the loan of gift funds to the donor
unless the terms of the loan are equivalent to those available to the general
public.
Regardless of when gift
funds are made available to a Borrower, the Mortgagee must be able to make a
reasonable determination that the gift funds were not provided by an
unacceptable source.
(4) Standards for Gifts of Equity
(a) Who May Provide Gifts of Equity Only Family Members may provide equity
credit as a gift on Property being sold to other Family Members.
(b) Required Documentation The Mortgagee must obtain a gift letter
signed and dated by the donor and Borrower that includes the following:
·
the donor’s name, address,
and telephone number;
·
the donor’s relationship to
the Borrower;
·
the dollar amount of the
gift; and
·
a statement that no
repayment is required.
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| don't get caught at the last days without trail on gift funds here small catch |
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| sunset at Morro Rock |
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| Uncle Theo gave be a big cash gift |
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| The money came into my account from Heaven |
Conventional:
Gift letters
required for all conventional agency loan programs. In addition, "donor ability" must be verified: The lender must verify that sufficient funds to cover the gift are either in the donor’s account or have been transferred to the borrower’s account. Acceptable documentation includes the following:
- a copy of the donor’s check and the borrower’s deposit slip,
- a copy of the donor’s withdrawal slip and the borrower’s deposit slip,
- a copy of the donor’s check to the closing agent, or
- a settlement statement showing receipt of the donor’s check.
When the funds are not transferred prior to settlement, the lender must document that the donor gave the closing agent the gift funds in the form of a certified check, a cashier’s check, or other official check. (Note: documentation is the same regardless whether the gift was already on deposit at time of application or not.)
required for all conventional agency loan programs. In addition, "donor ability" must be verified: The lender must verify that sufficient funds to cover the gift are either in the donor’s account or have been transferred to the borrower’s account. Acceptable documentation includes the following:
- a copy of the donor’s check and the borrower’s deposit slip,
- a copy of the donor’s withdrawal slip and the borrower’s deposit slip,
- a copy of the donor’s check to the closing agent, or
- a settlement statement showing receipt of the donor’s check.
When the funds are not transferred prior to settlement, the lender must document that the donor gave the closing agent the gift funds in the form of a certified check, a cashier’s check, or other official check. (Note: documentation is the same regardless whether the gift was already on deposit at time of application or not.)
What
are the requirements for gift fund’s when the donor wires direct to escrow?
Based on FHA and conforming conventional loans is the copy of the wire showing
where it came from enough along with gift letter.
Cash is not okay, anything over $500 is a Patriot Act Violation
Cash is not okay, anything over $500 is a Patriot Act Violation
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