Tag Archive for: gift funds

How To Use Gift Funds with Fannie Mae Loans

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In this blog post, we will demystify the concept of gift funds, explain how they work, and guide you through their utilization with FNMA (Fannie Mae) loans. By the end of this article, you’ll better understand how to navigate using gift funds toward your purchase.Read More

Wedding Cash Gifts For Down Payments!

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This is a short blog, but it is a great reminder for every agent working with or catering to newlyweds! Cash received for a wedding gift can be used towards […]Read More

17 Ways to Lower Debt Ratios and/or Garner More Funds

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I blogged recently about 8 Ways to Lower Debt Ratios When Rates Are Climbing – and I got numerous additional suggestions from a friend who owns a mortgage bank (Apex […]Read More

8 Ways to Lower Debt Ratios When Rates Are High

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With rates rising so quickly, “debt ratios” are becoming a major issue for many borrowers. Hence, I am repeating this past blog where I set out various ways to lower […]Read More

How to Get a Low Down Payment: A Guide for Borrowers

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For many homebuyers, the down payment is the most significant obstacle on the road to homeownership. This is why so many homebuyers are looking for mortgage loans with low down payment options when purchasing a home.Read More

The New Millennial Housing Market in Texas

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Millennial buyers (those born 1981-1997) have quickly entered the housing market and they are rapidly becoming the largest and fastest-growing demographic. A 2020 Realtor.com forecast gave the estimation that 51% of the housing market will be comprised of millennials, outnumbering both Generation X and Baby Boomers combined. This will be especially prevalent in Texas markets where millennials make up on average, 25% of the population.Read More

Legal Sources of Funds; FHA Purchase to $800,000

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I received the following questions from a very seasoned real estate agent the other week: “I have a 3.5% down offer for $795,000 on my desk – A. Does FHA even go that high; and B. What are the legal sources of funds for a down payment and closing costs?"Read More

Don’t Deposit Gift Funds, Please! (Straight to Escrow)

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It is well-known that buyers can use “gift funds” from a relative to help with the purchase of a home. But, we want to again remind buyers to not deposit […]Read More

8 Ways To Lower Debt Ratios & Qualify for More

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I repeat this topic from time to time b/c “Debt Ratios” weigh so heavily in our pre-approval process and b/c tight debt ratios so often prevent borrowers from buying the property […]Read More

The New Millennial Housing Market

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Millennial buyers made up 34% of the housing market in 2017. Millennial buyers were the largest group that year in the housing market, with 66% of them being first-time buyers. That means nearly half of all millennial buyers are already in the housing game and have bought and sold more than one property.Read More

Post-Close HELOC to Reclaim Liquidity; 90% CLTV

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We often encourage buyers to put down 20% or more not just to avoid mortgage insurance, but also to make their offers much stronger and to allow us to close in 17 days (80/10/10 financing with two loans requires 21 days). It is important for buyers to remember, however, that they can get lines of credit immediately after close up to 90% of the purchase price, in most cases.Read More

Cash to Close – Part 27; Beating The Dead Horse Again

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We hit this often but it is the cause of so much confusion and delay that we are addressing it again. Lenders need to carefully estimate how much cash will […]Read More

Rules For Gift Funds

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FHA and conventional loans both allow gift funds, but the rules vary. Here's what borrowers and donors need to know about sourcing, down payment amounts, and escrow deposits.Read More

Converting “Cash” to Down Payment Funds – Gifts

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We frequently have borrowers with substantial sums of cash that they want to use for a down payment. They cannot simply deposit the funds in escrow or into their bank accounts b/c lenders will want to know where the money came from. Lenders prohibit the use of un-sourced and unseasoned funds in all transactions. Buyers with cash need to find a donor or “gifter” willing to “gift” a similar amount. The donors should always gift the funds straight to escrow b/c the paper-trail requirements are so much simpler. For conventional transactions, if donors gift the funds straight to escrow, the only paper-trail that is required is a simple gift-letter and a copy of the gift check. No bank statements or proof of funds are/is required. If gift funds go into a buyer’s bank account (instead of escrow), lenders then want to see the donor’s bank statements. This often creates problems.Read More