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How to write a good Gift letter

By
Mortgage and Lending with Keystone Home Finance - NMLS#834342 - Conventional - FHA - VA -USDA - Jumbo Programs - Direct Phone 412-726-1654 NMLS# 137243

If they have a generous relative, gift funds can allow a prospective home buyer to purchase a property without tapping into their own bank account.  Whenever my clients are receiving gift funds I find it is best to let them know exactly what an underwriter wants to see on the gift letter.

A Gift Letter Should Include the Following:
1) The dollar amount
2) Name of the donor
3) The donor's signature
4) Address
5) Telephone number,
6) Relationship to the borrower
7) The borrower must be named
8) The borrower's signature(s)
9) The letter must state that no repayment is required
10) Include language asserting that the funds were not made available to the donor from any person or entity with an interest in the sale of the property.

David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

I think I need some more generous relatives.  My lender takes care of most of this, but these are good tips to be prepared ahead of time if you're asking relatives for money.  As a buyer you should be proactive about these items.  Lenders these days have enough hoops to jump through as it is. 

Mar 09, 2010 07:15 AM
Keith Landis
Keystone Home Finance - NMLS#834342 - Conventional - FHA - VA -USDA - Jumbo Programs - Direct Phone 412-726-1654 - Pittsburgh, PA
Pennsylvania - "Your Pennsylvania Mortgage Source"

I hear ya.  I prep my customers who have yet to find a house about getting these types of things in order.  This way when they find a home the financial legwork is done.

Mar 09, 2010 07:32 AM