A heads-up on down payment gifts/West Hills Ca/Real Estate/Homes for Sale

Many of my clients have been considering helping their kids with a down payment on their first home. If this is something you’re considering, you may want to know how the gift could impact their mortgage application:

Ready to buy your first home? Have a down payment ready to go? Before you apply for that mortgage, here’s something you should know about disclosing the source of your down payment.

Q: Part of my down payment was a gift from my parents. How will this impact my mortgage application?

A: It depends on the type of mortgage you’re applying for.

You should be prepared to explain your gift with documentation. While FHA loans typically will permit a down payment from a family source, your more conventional mortgage will expect at least 5% of the funds to have come from you.

One of the keys to ensuring this process goes smoothly is having documentation to back up your claim. Bank statements showing the source of the money (and when you received it) are a good place to start, along with a letter signed from your generous benefactor declaring the gift.

As a rule, you should be careful of any large deposits to your account (besides your regular pay).

I urge you to talk to a mortgage professional for complete details as they pertain to your specific situation.

Need a referral to a qualified mortgage broker? I’d be glad to share with you the names of people I know and trust. Contact me today for a referral:

Esperanza Butler

DRE. 01797405
Realtor, GRI, e-PRO, SFR
Exit Platinum Realty
20812 Ventura Blvd.#101
Woodland Hills, Ca. 91364
Cell: (818) 926-5425

www.esperanza4homes.com

www.ExitRealtyWoodlandHillsCa.com

www.westhillscaagent.com

www.exitagent.me/esperanza.butler