Down Payment Gift

Will you or your Buyer be receiving money from some else to help with the 
down payment?

This is called a "Down Payment Gift."

AND yes...

                                                                There are RULES of how to accept gift funds

3 Step Process
when you accept a cash gift for a down payment on a home, there's a 3-step process to follow. No matter where your loan is ultimately headed -- Fannie Mae, Freddie Mac, FHA, VA, or the USDA -- the process is the same.

First, write a gift letter that follows the includes the following information :

The amount of the gift

·         The subject property address

·         The relationship of the gifter to the giftee

·        A note that the gift is actually a gift and not a loan

·         Have all parties sign and date the letter. 

Next, with your gift check in hand, physically walk into your preferred depository bank.  Select the bank account from which all of your down payment funds will be drawn.  Do not create your down payment fund with monies from multiple bank accounts strewn across multiple banks. Pick one bank and one bank account at said bank.

Finally, do the following:

1. Deposit the down payment gift as a single deposit.
2. End your transaction.
3. Collect a receipt for your deposit.

Under no circumstances should you "co-mingle" the gift deposit. If the gift is for 10% down on the home, the deposit receipt should be for 10% of the home's purchase price. It should also match the exact amount specified on your certified down payment gift letter.  If the deposit amount fails to match the gift amount specified in the gift letter; or the amount shown on the gifter's teller receipt; or the amount shown on the photocopy of the gift check, your lender will likely disqualify your use of "gift funds" entirely. 

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