FHA Mortgages: Documenting the Transfer of Gift Funds

Reblogger Charles Stallions
Real Estate Broker/Owner with Charles Stallions Real Estate Services

I saw this post and went into to see my lead buyers agent to see how this would work for us. Joyce says that Keith has explained it very well but that here in Pensacola, Pace and Gulf Breeze we have several programs that will get buyers a 100% loan. So call Joyce and get to work on the specifics and let us get you moving.

THOUSANDS OF HOMES.... One Address www.charlesstallions.com

Charles Stallions, CRS, CSP, CBR, CDPS, SREE, EREI - 800-309-3414

Charles is a Real Estate Investor of 25 years, a Real Estate Broker for 15 years while holding several degrees in management, an expert in the buying and selling of real estate. Whether you’re buying your first home, second home, vacation home, investing in rentals, a kiddie condo for college or your dream home, buying any home is an investment in the future and you owe it to yourself to have Charles’s expertise to buy right and make the right decisions for YOU. For over the phone evaluation and NO Obligation CALL NOW! you have OPTIONS, we have FACTS, let’s TALK


Original content by Keith Landis NMLS# 137243

FHA Mortgages and Gift Funds


FHA Mortgages allow borrowers to use Gift Funds to meet the 3.5% down payment requirement.  When using Gift Funds to purchase a home it is important that Gift Funds be documented properly to avoid any issues with the FHA underwriting process.  The primary intention of these rules is too make sure that the FHA borrower is not also borrowing their required 3.5% downpayment and that these funds truly are a gift.  

Acceptable souces for these gifts  

  • a borrower's relative
  • a close friend with a clearly defined and documented interest in the borrower
  • a charitable organization
  • a government program that provides down payment assistance


How to accurately document these funds is as follows... 


If the gift funds ...

Then the lender must ...

 Are already in the borrower’s account



·   a copy of the withdrawal document showing that the withdrawal was from the donor’s account 

· the borrower’s deposit slip 

· bank statement showing the deposit



Are to be provided at closing, and 

· are in the form of a certified check from the donor’s account




· a bank statement showing the withdrawal from the donor’s account, and

·  copy of the certified check 



Are to be provided at closing, and 

·  are in the form of a cashier’s check, money order, official check, or other type of bank check


· have the donor provide a withdrawal document or cancelled check for the amount of the gift, showing that the funds came from the donor’s personal account



HUD 4155.1 Chapter 5, Section B 5-B-1





Keith Landis is a Licensed Mortgage Loan Officer covering all of Pennsylvania.  He can be reached toll free at 877 334 6094 or on his cell at 412 726 1654 or by email at klandis@keystonehomefinance.com 

NMLS # 137243

further information can also be found here....


pennsylvania mortgage news

trulia - keith landisfacebook keith landisPennsylvania HARP Mortgage


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Great re-blog. This is such a crucial issue that can cause such headaches and time delay. I spend a lot of time, during the preapproval process, to make sure the clients understand how to manage the gift fund process correctly.

May 09, 2012 06:59 PM #1
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

What a great post - thanks for sharing.  i really enjoyed reading.  i think it will take a long time to get these thoughts out of our buyers minds.  The buyers really need to trust and listen to the professionals that are out in the market every single day.  Thank you! :)

Sep 05, 2013 02:23 PM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Charles Stallions

800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.
Got a question? Just Ask Me
Spam prevention

Additional Information