Mortgage and Lending with Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. LMB100023827. NMLS257576.
Many states, such as Colorado, offer down payment assistance programs, or even county bond programs, such as the El Paso County Bond program. But sometimes a family member is interested in gifting you down payment money. It's important to understand the guidelines of a gift for down payment will vary by the financing vehicle you choose.
Below is a comparison chart to help you make your decision on which is best for you.
Agency
Acceptable Donor
Guideline Specifics
Fannie
B3-4.3-04
A relative, defined as the borrower’s spouse, child, or other dependent, or any individual who is related to the borrower by blood, marriage, adoption, or legal guardianship;
Fiancéor fiancé or domestic partner
The donor may not be, or have any affiliation with, the builder, the developer, the real estate agent, or any other interested party to the transaction.
Primary and second home purchase only
Not considered an Interested Party Contribution
Gift letter required
Minimum borrower investment of 5% is required for second home if LTV is >80%.
Freddie
5501.3
A relative, defined as the borrower’s spouse, child, or other dependent, or any individual who is related to the borrower by blood, marriage, adoption, or legal guardianship;
Fiancé or fiancée or domestic partner
Primary and second home purchase only
Not considered an Interested Party Contribution if the seller is not, nor has any affiliation with, an interested party
Gift letter required
Minimum borrower investment of 5% is required for second home if LTV is >80%.
FHA
4000.1, II, A, 2, b, ii, (A)
4000.1, II, A, 4, d, iii, (F)
Family member defined as
child, foster child, parent, or grandparent;
spouse or domestic partner;
legally adopted son or daughter, including a child who is placed with the borrower by an authorized agency for legal adoption;
brother, stepbrother, sister, stepsister;
uncle or aunt
son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the borrower.
Limited to 85% LTV unless:
Residence is currently selling-family member's primary residence, or
Purchasing family member has been renting residence 6 months prior to sales contrac date.
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.
Serving Colorado Springs and surrounding areas Offering FHA, VA, conventional, bond financing programs
Contact ,
ME
719-592-0855
