Different loans have different regulations...and sources can matter as well...good to know the details up front and what programs are offered.

Good morning Whitney,

Isn't bribery an offense punishable by law in a banking situation!

Hope you paid a penalty an interest when repaying the money.

Make yourself a great day.

Good morning Whitney. I love this post and the story you told about your daughter. I wonder if she is tougher than most bankers?

Whitney, first off, that title was terrific. This is a wonderful post and I loved that you shared a little personal story to start off....this one should have been featured!

Whitney, this is a great explanation.  When I bought my house, I was a new Realtor, and I had a bunch of stuff settling the week before settlement.  I had to get a letter from my broker explaining the huge increase in my bank balance was not from a big drug deal. 

And yes, terrific title!

A lot of folks can use this advice.  One must have "seasoned" funds and a good paper trail too!

Seems like you have impacted in your daughter great money management skills. Great information. Thanks for sharing Whitney Watson.

It takes Buyers some serious counseling when they want to buy a home, and 6 to 9 months before they want to move is a good time to set down with a Lender.  Great advice!

Where there is a will there is a way. Just have to make sure it is all legal. Have had a few gift closings lately.

Very well written and informative article. So many people want to house hunt before even really knowing what they can afford or even thinking about the finer details of financing.

Whitney Watson - not sure 'borrow' is an appropriate term when parents take money from their children. I know, officially, it is borrowing.

Neither do I believe it's parent's right to ask for money.

Somehow, I feel, this should remain in family.

Whitney, oh, how I LOVE that this one got featured--yea!!! 

I think etiquette dictates that they should have the offer to give you the money just to keep family dynamics happy. Look them over before you jump in headfirst.

I love the excitement that Gayle is showing you and we definitely need more of that on our downtimes and up times as well!

My last comment before I go as I keep wanting to comment ha ha Is just to tell you to not ever lose that smile, wow!

Thanks for a very useful post which we can share with our clients. I will certainly save this one!

Whitney,

Congrats on this post!  It's great you included your daughter in this story.  Knowing all the eligible sources for a down payment is very useful information!

Putting funds in a buyers account way before they are needed makes the process easier.

Congrats on the gold star!  Your story was so cute and a great way to kick off the post.  Your daughter sounds like she may have a future in underwriting!

Nice posting Whitney.  You offer a good explanation of what is allowed for part of the downpayment as well as good info for a buyer to get the funds in the account sooner vs later so they do not have to explain every deposit, esp one if they have cash stored away.  I had a recent client, self-employed who lives off tips, so my client had to go thru that painful process of documenting every deposit and where the funds came from for the underwriter, a painful and time consuming process.

Great article. Teaching your kids at an early age will see that they grow up with a knowledge on how to grow their money. Looking at my friends I know which ones had been taught and which ones were not.

Whitney, so many people have issues with 'mattress money' and get upset when they want to use $15,000 to $20,000 of their cash for a purchase and are told they cannot use it until it is seasoned.

Great blog!  Good info for borrowers and love the examples of borrowing from a child's account.  Good to know.  It is a shame parents borrow and never return. :(

I can't even imagine borrowing from my child's account.  That's just ridiculous.

Hi Whitney, thanks for the informative blog, great information for prospective buyers.

Hi Whitney Watson 

A few of my friends have stories of parents borrowing money from them and not paying them back.  Also stories of establishing utlities in their name.  Anyways excellent post, and best of GREAT success to you always!

This is great information for home buyers.  Gifts are becoming more common as baby boomers would rather give the money to their children now, to help them get their first home than wait until they have passed away and leave it as an inheritance.  Especially with the student loan debt burden making it very difficult for young buyers to save money for a down payment.

Will re-blog this excellent post!

In this scenario, "borrow" seems more like "raid" as the underage child can't participate in the purchase contract.

As your daughter gets older, maybe tell her about interest on cash borrowed. Since this was a "hard money loan", maybe 10%+ would be indicated. :-}

Great story ...love the story about your daughter.

Never heard, or had, a parent borrowing from their children.  I know adult children get gifts from the Bank of Ma & Pa all the time.  Interesting.  You daughter sounds adorable, btw.  "Tickets" . . . too cute!  Did you pay her back with ticket interest?

Hi Whitney, excellent post. And agree, Most homebuyers have no idea what funds can be used for a down payment and what funds are off limits.

Whitney, Thanks for a great very informative post. I am not sure when my kids were young if I could have gotten a loan.

Whitney -- You're so right that most people do not know which funds can be used for a down payment and which cannot.  Great informative post.

This post provides the public with valuable information, Whitney! Great job.

Hi Whitney,  Congratulaions on your Feature.  Great information that  many people are not aware of when buying a home.

Seasoning makes everything go smoother, especially if funds are from a foreign source.

We usually hear about kids borrowing money from parents, but it can be the opposite. 2-3 months wait is not that long:)

Great information!

Whitney:

Love your post.  Too bad the piggy bank is off limits.  Your advice about putting cash in an account for 2-3 months before you are ready to purchase a home is excellent. 

This is great advice, Whitney! I had a relative who used to hide money in the curtains, under the bed, in the stove, etc! She was a depression era baby and she hoarded it!

Nice of you to give back the money. I have to admit I have taken from my kids and not returned. Bad mommy!

Whitney, Thanks for the tip about 2 months of bank staements as you never know when that might come in handy. 

Hello Whitney ... Vegas Bob would love to "Feature" your post to one of his groups, but once again the ActiveRain Network is (Broken).

And if you notice, you posted to 5 different groups and one of them shows up on at the bottom of you post. I guess only "The Gods" have the power to Feature so congrats to you, wonderful post

Whitney, what a great post to make parents aware of how the gift funds work for a home purchase!  

It's the opposite here...the kids are borrowing from us!  It's only happened a couple times and we were paid back. I can't imagine borrowing from my kids, nevermind NOT paying them back if I did!

This Great Information, Whitney. I have buyers that always ask these type of questions. Happy Thanksgiving!

Hello Whitney,

Seasoning the funds is the hard part for some!

Vegas Bob has featured your post to the group:

SUCCESS AT ACTIVERAIN