Gift Funds – Reminders

When a buyer is receiving “gift funds” from a relative for a purchase, it is imperative that the funds go straight to the Title or Escrow Company. We beat this dead horse often, but we continue to get buyers who have received gift funds into their own checking accounts, creating “paper-trail” nightmares. GIFT FACTOIDS: (1) […]Read More

The Beauty of Gift Funds; Gift Funds Explained

Gift Funds for Down Payments are often employed to salvage transactions. Gift Funds for FHA transactions need to be sourced at the DONOR level, meaning the Donor must prove her “ability to gift” with bank or investment account statements. For Conventional Transactions, however, we have lenders that do not require Donors to “prove their ability […]Read More

Gift Funds Again; FHA – 5% Down Payment?

Once again we have a slight funding delay because the buyer simply deposited her gift funds (from her sister) without getting a copy of the check or keeping a copy of the deposit slip (she had forgotten our previous instructions). In any case, when a buyer needs gift funds to close, it is always best […]Read More

Do Not Deposit Gift Funds – Gifting Parties Should Hang On to Their Funds

If your client is going to receive a “gift” from a family member for a down payment or closing costs, it is not advisable to have the “gift funds” deposited into your client’s bank account. It is far better and easier to have the gift funds deposited directly to escrow. The gifting party should just […]Read More

Gift Funds for Down Payment

We are getting frequent questions with respect to GIFT FUNDS. For a Conventional (Non-FHA) Purchase, Gift Funds do not need to be seasoned, and it is best if the Gifting Party does not gift the funds to the buyer; it is best from a paper trail and underwriting perspective if the Gifting Party writes a […]Read More