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Maybe it’s money your grandma has tucked away for the day you decide to buy your first house. Or maybe it’s wedding card envelopes stuffed with cash. Either way, receiving presents in the form of funds to put toward a down payment can take a huge burden off your shoulders when you’re looking to start the home buying process.

What Qualifies As A Down Payment Gift?

You might assume that you can just use whatever financial gifts your loved ones give you for a down payment, but using gift money is not as cut-and-dried as you might think. Whether you have $20 or $20,000, the source of the funds in your bank account will matter just as much as how much money you actually have.

To understand why the source of your funds matters to your mortgage company, you’ll first need to understand what underwriting is and how it impacts your loan.

Understanding Underwriting

Underwriting refers to the process in which your lender looks at your credit score, income and assets to determine how risky it would be to lend you money. When underwriters look at your assets, they check to make sure that the money in your account is indeed your money – they want to make sure any large deposits (other than something regular, such as your paycheck) are your actual assets. This includes confirming that any deposits in your account from friends and family that you plan to use for a down payment are gifts, not loans.

This is essential to ensuring that you can actually afford your mortgage payment, and that you’ll be likely to pay the loan back. If you used a personal loan to qualify for a home loan, chances are you’d be left with a big financial mess once you had to start paying both loans back.

So, how can an underwriter establish that deposits in your bank account are gifts and not loans? Let’s dive a little deeper into the concept of gift money, how it can be used in a real estate transaction and the effect it can have on your finances during the underwriting process and over the course of your home buying journey.

Types Of Down Payment Gifts

There are two types of gifts that your relatives or contacts can provide: a cash down payment gift or, in the event a family member is selling the property to you, a gift of equity. In each case, the funds may be used for the down payment, closing costs and prepaid interest points.

Depending on the type of loan, you may also be able to use the gift to pay off debts so you can qualify for your mortgage. In certain situations, a home buyer must have a certain amount of payment coming from their own funds:

  • A 5% contribution is required for conventional loans for second homes and multi-unit properties if the down payment is less than 20%.
  • There’s a required 5% contribution from borrowers on all jumbo loans.
  • If your credit score is between 580 and 619, 3.5% of your FHA down payment must come from your personal funds.

Cash Down Payment Gifts

A cash down payment gift is straightforward. You get money from a gift giver – oftentimes a family member – and use it toward your down payment and costs. There are a couple of things your lender will need from you to use the gift:

  • A gift letter (a written statement that includes, among other things, the amount of the gift and confirmation that it doesn’t have to be paid back)
  • Evidence of the transfer of funds

You can show evidence of the transfer with the donor’s withdrawal slip and your deposit slip, or a copy of the check and evidence that it’s been deposited into your account. If the gift is made at closing, there must be a copy of the donor’s certified check and a settlement statement with the exact amount of the gift. If the donor borrowed the funds, they need to be able to document the source. The gift cannot come from cash the donor has on hand.

Gifts Of Equity

While gifts of equity are not technically cash deposits, they can be helpful tools in acquiring real estate. A gift of equity occurs when someone (usually required to be a family member) sells you a property for below the sale price.

The difference between the price you pay and the listed price is considered an amount of equity to be used toward your down payment, or to help pay off debt to qualify. It can also be used toward your points and closing costs.

To use the gift of equity, a home buyer must include a gift letter, just as if they were being given a cash down payment. Minimum contribution requirements still apply as well.

On FHA loans, a client can also get a gift of equity from a nonprofit agency or his or her in-laws.

Gifts of equity are not allowed on VA and jumbo loans.


Underwriting, Gift Money And Gift Letters: Timing And Amount Are Key

While gifts of equity can be valuable contributions to those trying to buy a home, we’re going to focus more on gift money for down payments and the role it can play in the mortgage underwriting process.

Say you’ve just gotten married and received a chunk of money to put toward your down payment. While you may be excited to get that cash in the bank, you don’t want these deposits to cause problems when you’re trying to qualify for a mortgage.

As the underwriter begins to review your finances, there are two important factors at play with regard to the influence your gift money can have on the process: the timing of when you received the gift money, and the amount of gift money needing to be formally verified through gift letters.

Let’s expand on how gift money impacts underwriting.

Timing Of Gift Money Being Received

Asset verification is an important component of the underwriting process, and different lenders can have different requirements for the kinds of materials needed from prospective borrowers to verify the sources of wealth being used to back their real estate purchase. Rocket Mortgage®, for example, requires a 60-day history of assets for qualification purposes.

If you’re able to provide your underwriter with sufficient documentation to prove that the gift money you received was recently accounted for among your assets, you should be able to put the funds toward your down payment without issue.

Amount Of Gift Money Up For Review

So, within that asset history time frame established by your lender, which deposits do you have to worry about getting a gift letter for? Grab your wedding veil and jump into this hypothetical situation with us for a moment.

You just got married. Aunt Sue gave you a $75 check, but Grandma Betty gave you $10,000. Will you need gift letters for both deposits?

In general, your underwriter will need to verify the source of any large deposit. What’s the criteria for a “large deposit,” you ask? It’s any single deposit that exceeds 50% of the total monthly qualifying income. This is for conventional, VA and jumbo loans. For FHA and USDA loans, a large deposit is defined as any deposit that is greater than 1% of the adjusted purchase price or appraised value, whichever is lower.

Let’s say you’re doing a conventional loan for our example. If you make $4,000 a month, any deposit over $2,000 would probably be questioned by your underwriter. Therefore, the underwriter will probably want to verify that Grandma Betty’s $10,000 gift is a gift, not a loan, so you’ll need to ask her for a gift letter. Aunt Sue’s gift, however, is small enough that the underwriter might not question it.

Of course, this is partially up to the underwriter’s discretion. If there are any deposits that seem to be out of the ordinary, your underwriter may question them regardless of your income. If you normally had $2,000 in your checking account and you suddenly have a deposit for an extra $8,000, they would want to verify that regardless of the purchase price/appraised value or qualifying income.

Your lender would dig deeper into that situation to make sure the situation checks out. While your Aunt Sue’s small gift might not be questionable in itself, if the underwriter finds that it’s out of the ordinary, they may require gift documentation.

Who Can Gift Money For Mortgage Down Payments? Guidelines Based On Loan Type

Depending on the type of loan you’re getting, there are differing guidelines regarding who may give a down payment gift to you. Let’s briefly go over those.

Conventional Loans

If you’re getting a conventional loan through Fannie Mae or Freddie Mac, the gift has to come from family. For the purposes of your mortgage, family is defined as follows:

  • Spouse
  • Parent (including step- and foster)
  • Grandparent (including great-, step- and foster)
  • Aunt/uncle (including great- and step-)
  • Niece/nephew (including step-)
  • Cousin (including step- and adopted)
  • In-laws (including parents, grandparents, aunt/uncle, brother- and sister-in-law)
  • Child (including step-, foster and adopted)
  • Sibling (including step-, foster and adopted)
  • Domestic partner
  • Fiancé

If you happen to get a loan from Fannie Mae, they also allow gifts from future in-laws.

FHA Loans

With FHA loans, nearly all of the above are considered family who can give you a gift, including future in-laws. However, some caveats apply.

While cousins, nieces and nephews aren’t able to give your gift under normal family guidelines with an FHA loan, the FHA does allow for gifts from close friends who have a clear interest in your life. This can include extended family like cousins, nieces and nephews and even former spouses.

In addition to the close friend guideline, the FHA also allows for gifts from the following:

  • Employer
  • Labor union
  • Charitable organization

Finally, you can receive funds from a government agency or public entity that provides homeownership assistance to low-to-moderate-income or first-time home buyers.

USDA And VA Loans

The USDA and VA don’t place very many restrictions on who can give you a gift. The only stipulation is that it can’t be an interested party. An interested party is someone who is involved in the transaction directly or indirectly. This includes, but isn’t limited to:

  • Seller
  • Builder
  • Developer
  • Real estate agent or REALTOR®

Are There Restrictions On How Gift Funds Can Be Used?

There are no limits on the amount someone can give you for a mortgage down payment or closing costs. However, depending on the loan and property type, you may be required to contribute a certain percentage of the down payment from your own funds.

Keep in mind that these rules are subject to change based on lending regulations, so you should check with your mortgage company for up-to-date guidelines.

Primary Residences

If you’re getting a primary residence, you can use gift funds for your down payment. These guidelines apply:

  • If it’s a single-family home, you can use gift funds without having to contribute any of your own money to your down payment.
  • If it’s a multifamily home, you can get a home without having to contribute to the down payment as long as the down payment is 20% or more. If your down payment is 20% or less on a multi-unit home, you have to contribute at least 5% of your own funds to your down payment.

Second Homes

If you’re getting a second home through a conventional loan (you can’t get them through the FHA, USDA or VA), the following guidelines apply regarding gift limits:

  • If you’re making a down payment of 20% or more, all funding for the down payment can come from the gift.
  • If it’s less than 20%, then 5% of your down payment must come from your own funds.

Investment Properties

Gift funds cannot be used toward the down payment on an investment property. In most cases, if you’re looking to purchase real estate to make money off of the property, you’ll need to use your own funds to cover the down payment.

What Are The Tax Implications Of Down Payment Gifts?

Tax laws change on a fairly regular basis, and you should always speak with your financial advisor or tax professional in order to make sure you’re in compliance with the most current law.

In general, you won’t be responsible for any taxes on gift funds. Your donor may be, however, and it might be helpful for you to make sure they’re aware of that. The only occasion where you’d be expected to pay the gift tax would be if you’d agreed to pay it for the donor.

For 2021, the annual exclusion for gifts is $15,000, meaning donors can give up to this amount without having to report it.

If your donor gives you more than that amount, they’ll have to file a gift tax return to disclose the gift. Filing a return doesn’t mean that they’ll have to pay taxes on the gift, it just means that the amount has been counted toward their lifetime gift tax exclusion, which dictates how much money you can gift a person over the course of your lifetime.

The Bottom Line

If you know that you’ll be getting any financial gift to help with your down payment, be prepared to document it for your mortgage company. Do you still have questions about using gift money for your down payment? Get started online, or give us a call at (800) 785-4788 to speak with one of our Home Loan Experts!

This Post Has 475 Comments

  1. Hi I have a question. We lent our sister in law $7,750 for a down payment so she can purchase a new home for her and your daughter. We wrote a letter stating that the money is a loan and doesn’t need to be repaid. That money that was lent can i add that to my taxes for 2022 or is that something that can’t be added. Thanks

    1. Hi Joseph:

      I would talk to a tax professional. However, it’s important to note that if you said the money didn’t need to be repaid, it’s a gift and not a loan. It may be treated differently for tax purposes. Thanks for reaching out!

  2. Yes I live in ****************** my house appraised for 2 + 40000 and the treatment at 60000 will I have in my vacation loan please get back to me I think I’m getting screwed

    1. Hi Matthew:

      I’m going to have someone reach out to you because I want to make sure we talk through your situation. I’m also going to remove your address because this is a public comments section. Thanks for reaching out!

  3. My fiance and I are buying a home. We are in contract and in the last steps to close our home. I have an uncle who owns his business in Georgia that will be gifting to us the down payment. He does not feel comfortable giving his bank statements for his business account. What can we do in this issue? He’s willing to write a gift letter and also give a certified check with his businesses logo. Need some help

    1. Hi Angelica:

      I’m going to recommend you speak with one of our Home Loan Experts at (888) 980-6716. The sourcing requirements depend on the type of loan you’re getting, so I want to make sure you get the right advice for your situation from a licensed professional. Have a great night!

  4. Hello!

    We are looking to get a mortgage loan to buy a house, and we have some questions about the process. I can be reached via email, or my cell number at .

    Thank you,

    Kristen Cespedes

    1. Hi Kristen:

      I’ve removed your phone number because this is a public comment section. The fastest way to get in touch with someone is to fill out this form or give one of our Home Loan Experts a call at (888) 980-6716. Thanks for reaching out!

  5. My husband and I are purchasing my parent’s home as our primary home (first mortgage), and they will be giving us the 10% down payment as a gift. How can we go about this? Do we still need to do the transfer (i.e., show proof of the gift), even though the said down payment will eventually revert back to them (my parents)?

    Thanks so much for your guidance.

    1. Good afternoon, Victoria:

      No, you wouldn’t do the transfer. Instead, what happens in this case is that you would do something called a gift of equity. You can find out more by reading that post, but essentially it’s a discount you can take advantage of when you’re getting the property from a family member. You still have a gift letter written, but there’s no actual transfer. If you would like to get started online, you can do so with Rocket Mortgage or give us a call at (888) 980-6716. Have a good day!

  6. When someone is giving you a gift. Can they use a cashiers check? With proper documentation such as the with draw and deposit slips and the bank statements?

    1. Hi Sarah:

      A cashier’s check may be used. The only thing is that the name of the person listed as a remitter, giving the check, must be a donor according to the gift letter. Thanks!

    1. Hi Muhammad,

      You can use gift money for a down payment on many loan types. To go over your options, I recommend either starting online with Rocket Mortgage or giving one of our Home Loan Experts a call at (888) 980-6716.

  7. Gift of equity question – Conventional Loan – Fiancé Family would like to gift us 3% – They own property- I will be the only one on the loan – Not the fiancé

    1. How does that work with future in-laws?
    2. How can you ensure that your new mortgage is backed by Fannie Mae? (According to the article it is the only loan type that allows for a “future in-law” gifting)
    3. How should the relationship be noted on the “Gift Letter” mentioned in the article.

    Thank you.

    1. Hi Da:

      I’m going to take these in order.

      1. It works the same way as it would with any other gift of equity. They write up the gift letter as described in the post. Then there just has to be evidence of transfer through deposit slips or as otherwise described in this article.
      2. The lender takes care of making sure the mortgage is sold to Fannie Mae, so you don’t have to worry about that. This only matters if for some reason you can’t qualify based on one of Fannie Mae’s other guidelines, but we would be able to walk you through the process and work to troubleshoot any issues.
      3. As an example, they would be your future mother and father in law.

      I hope this helps! If you’re ready, you can start your application online with Rocket Mortgage or give one of our Home Loan Experts a call at (888) 980-6716. Have a great night!

  8. I am going to give my brother $15,000 and I am also going to give his wife $15,000 for a home loan. A total of $30,000. Can I write 1 check in both their names? Since I am giving $15,000 to each I will not have to fill out the gift tax paperwork and I will not be taxed. Is that correct? Will they be taxed? Will they have to file separate tax returns or can they still file jointly? Thank you!

    1. Hi Jane:

      I’m going to take these kind of out of order, from easiest to hardest. They won’t be taxed. To the extent that there’s any tax liability, it would fall to you as the donor. This also wouldn’t affect their tax filing status. The gift tax exclusion limit is $15,000, so you’ve got the right idea. However, unless you give away a ton of money either during your lifetime or after you pass through inheritance, I wouldn’t worry about that. I say that because the total amounts you can give in your lifetime without having to pay taxes on it is $11.4 million. The only difference between having a gift over $15,000 and not is the fact of whether it actually needs to be reported to the IRS by you. Gifts above $15,000 count toward your lifetime limit, but the odds on having to worry about that may be pretty low. In terms of whether you can write one check for $30,000 and have it count as to $15,000 gifts to two separate people, I don’t know. A CPA or tax pro could probably tell you more about how the IRS treats that.

  9. My fiancé and I want to purchase a home before we get married. I have a full time job as a teacher, and she has a part-time job as a substitute teacher. I have two questions:
    1. If her parents are willing to gift us the 20% down payment (no pay backs needed), how would it work?
    2. How much will her part-time position affect our ability to pre-qualify considering the gift will be deposited to her account?

    1. Hi Kristoffer:

      Thanks for reaching out!

      1. If you want to get a gift from your future in-laws, only Fannie Mae currently allows that, meaning that it would be a conventional loan. Given that, to use both of your incomes, you both have to have at least a median FICO® Score of 620 or higher in order to qualify. Your fiancé’s parents have to write a gift letter that includes all the things mentioned in the blog post. Additionally, the letter has to contain language to the effect that you didn’t get the funds from an unacceptable donor like the seller, the builder/developer, or real estate agent involved in the transaction. Since it’s a conventional loan, we would also just need evidence of the funds transfer. A Home Loan Expert can you walk you through acceptable means of proof.
      2. As long as she has a history of receiving the income for being a substitute, the fact that it’s a part-time job wouldn’t have an effect. It’s all about employment history. I do recommend speaking with one of our Home Loan Experts at (888) 980-6716 to go over your situation in more detail.
      3. Have a good day!

      1. I purchased a home in 2017 and my fiancé at the time gifted me $14,000 for the down payment, I covered the other $36,000 of the down payment in order to avoid the PMI. We didn’t get married for another three years (July 2020) but we continued to live there and I paid nearly all of the mortgage payments and she would help out with less than half of the payment when she could and it didn’t happen much. Unfortunately we are now filing for divorce after less than two years of marriage. She wants to sell the house and take half of what we make on it minus what is still owed on the mortgage. Wouldn’t the house be considered a non-marital asset since I purchased it three years before we were married? She is not listed on the mortgage, only me, and I want to keep the house. In Ohio here, I know each state can vary when it comes to separation of property.

        1. Hi Marc:

          It doesn’t matter who’s on the mortgage. What matters is whether she’s on the title. If she’s on the title, this will have to be dealt with in the divorce. However, she may also have homestead rights regardless. I recommend speaking with an attorney.

    2. I would advise against buying a home together until the knot is tied. Too many complications can arise if things don’t go as planned. Of course we never think that the unthinkable might happen, but it does. And you may be left holding the bag and be responsible for the mortgage/taxes/insurance payments all on your own. Legally, it would be the same as if you were buying a home with a friend. Just wait. In fact, many financial advisors advocate waiting at least a year after the wedding to buy. I consider that prudent for so many reasons.

  10. My wife and I have been saving up for a down payment for quite some time now. Her parents also gave us a gift of $25,000. We have enough in our accounts to cover the down payment without touching the $25,000 gift and are also debt free with over 800 credit scores. Will they still be required to sign a gift letter even though the gift was not for a down payment?

    1. Hi Eric:

      If you were to use that money is part of the down payment, they would have to sign a gift letter. If, however, you use the money to pay down the principal of the loan later on, no letter would be required. It’s important to note that your lender still may want to verify the source of funds as it could be considered a large deposit, though.

  11. Is this article saying a mortgage lender is only going to look at the last 60 days of my banking history? What if I am gifted $30,000 and apply for a mortgage 90 days later? Will they be looking at this $30,000 gift and need documentation for it?

    1. Hi Lauren:

      It depends a little bit on the type of loan you’re applying for. With conventional and VA loans, only the last 60 days are looked at. With FHA and USDA loans, there are circumstances in which the funds may need to be sourced. I recommend speaking with one of our Home Loan Experts at (888) 980-6716 for the best information. Thanks!

  12. Question Ref to a gift for a down payment for an FHA loan. I am being told by your company that along with the gift letter that The person giving the money has to provide a copy of their bank statement also. I am finding it hard to get that and to be honest in this day and age with fraud I can’t totally see it from their point of view. I was provided a certified check by my father to assist with the house that has already been deposited. (Less than 60 days) I was just wondering if there is any way around this part since I can’t seem to find this requirement anywhere else except the form that was given on the loan page itself.

    Thank you for your time.

    1. Hi Richard:

      I can tell you that when it comes to gift funds, we’re following FHA policy in this matter. All FHA lenders are required to abide by these. However, I’m going to have our Client Relations team reach out and go over your specific situation and exactly what we need and why we need it. Thank you for reaching out!

  13. My husband wants to gift to his daughter and significant other the amount of $15,000.00 each for the down payment on their first house. The lender is telling his daughter that he cannot gift the money to her significant other, that it should be given to her only.

    My questions are: Why is their lender telling her that her father cannot gift any money to her significant other, only to her. Is this something the lenders tend to do?

    Thank you

    1. Hi Marie:

      If his daughter’s husband isn’t on the loan, the money would be gifted only to his daughter because it’s for the down payment on the mortgage and she’s the one liable for the mortgage. If they’re both on the mortgage, the gift should be able to be in both of their names. It could also be because certain lending products don’t allow you to get a gift down payment from your father-in-law. So it’s standard that the money would just be given to the daughter. I hope this makes sense!

    2. I take it by the term ‘significant other’, that the couple is unmarried. Some loans only allow for gifts from family, and if they are unmarried, this ‘S.O.’ isn’t considered to be family of the donor (the girl’s father).

  14. I have a house someone is living in and they want to buy the house from me. Since the house is worth more now then when i bought it I am agreeing to sell the house to them under the appraised value so they can use that equity as a down payment. the amount is going to be 72000. Does someone have to pay the taxes on that amount?

    1. Hi Debi:

      Before I get to the tax question, I want to make sure you know that a gift of equity can only come from a family member under the policies of many major mortgage investors, so depending on the situation, I would just make sure your buyers know that.

      In terms of the taxes, the seller has to claim and theoretically pay taxes on the gift. However, there’s a lifetime gift limit of $11.4 million for the leaving of estates and gifts. You also don’t have to report the gift if it was under $15,000. So in practical terms, you won’t have to pay tax unless you give away a lot of money.

  15. I’m going conventional with 20% down and we are having an issue with the gift funds which are the 20% down. My former inlaws, which are my kids grandparents, are gifting the funds. Under the conventional gift fund rules – does this kinship qualify as family since there were children born of the former marriage? If not, is there a way around this? For example, can the former inlaws gift the money to any of my children who then turn around and gift to me for the loan? Is this scenario acceptable under the conventional guidelines?

    1. Hi Jessica:

      Conventional guidelines are written such that the person giving the gift would have to be your grandparent. Former in-laws cannot give a gift down payment. I’m sorry. If you haven’t already, I do recommend talking with one of our Home Loan Experts at (888) 980-6716 to go over any other potential options you may have. Have a good day!

  16. If I gift my son a down payment to buy a house and only his name is on the loan but his and his wife’s name is on the house. Does that money remain his if they split up or will that get split between the two of them?

    1. The money goes to the mortgage company and then we cut the seller a check for the full purchase price, so it’s not a thing you would worry about down the line if they were to split up. The money is gone when they close. It’s in the house. Hopefully that makes sense.

  17. Hi My Wife has been saving on cash on hand and we plan to use this a for a down payment
    My question is can I deposit this money to my account and have a gift letter before we have the confirmed new address

    we are still shopping around

    1. Hi Jorge:

      You should be able to deposit the check now and when your lender wants to verify the deposit after you find your house, you can then fill out a gift letter at that point because you’ll have the address. If you would like to apply online, you can do so through Rocket Mortgage®. One of our Home Loan Experts would also be happy to go over your situation if you give us a call at (888) 980-6716.

  18. Im going thru underwriting currently. Expected close date is January 18th. I pre qualified for a conventional loan for $135,000. My down payment including appraisal fees is $7,548. I was going to ask a relative to front me the money as a gift which was option 1. If that dosent fall through can I take out a loan for the down payment? Im affiliated with a credit union and bank with Wells Fargo.

    1. Hi Marcus:

      Policies may vary depending on the lender, so I recommend speaking with them. Speaking for us, I can tell you that you can use funds from a loan to close generally as long as it’s secured by some form of collateral. Personal loans and other unsecured forms of funding can’t be used. Hope this helps!

      I should also note just because of the way you worded this that if you do go the gift route, the gift can’t be paid back. That’s considered a major red flag and is not actually a gift.

    1. Hi Askia:

      We can certainly help you look into your options. If you get a mortgage approval now, it’s good for 90 days. You also have the option of locking in today’s rates with a RateShield Approval and the Power Buying Process. If you want to get started online, you can do so through Rocket Mortgage or give one of our Home Loan Experts a call at (888) 980-6716 in the morning. Happy holidays!

    1. Hi Stephen:

      I’m sorry for the late response. If you’re looking for a personal loan, our friends at RocketLoans can help you look into personal loan options. If you’re looking for money for a home, you can get started online through Rocket Mortgage or give one of our Home Loan Experts a call at (888) 980-6716. Hope this helps!

  19. What if you have a high debt to income ratio, and someone pays off $20,000 of your credit card/student loan debt directly to the lenders themselves. So no money is deposited, but the other debt is cleared out. Would that require letters and documentation too/a waiting period, or is it better to keep the debt and put the gift down on the home loan? Thank you.

    1. Hi Greg:

      In most instances, you can use the gift funds themselves as a source to pay off the debt. That would require a gift letter, but it might be the easiest way to do something like this. I’m going to recommend you speak with one of our Home Loan Experts at (888) 980-6716 to go over the details of how this would work. Hope this helps!

  20. My father has dementia and is in a nursing home. I am his power of attorney. He has enough in his investment accounts to cover our down payment, and we have the same financial advisor. The advisor agrees that he would give us the money, but he is not able to write a gift letter because of his mental condition, and the advisor can’t write the letter because of legal reasons. Is there any way for me to get a loan in this situation?

    1. That’s a good question. You may be able to do it because you have his power of attorney. However, I would advise you talk to an elder law attorney local to you to go over this situation and make sure that’s the case in your area.

  21. My father is going to gift my common law wife and I $20,000 to assist with a downpayment. He is interested in giving it to us in two chunks (Dec. and Jan.) to avoid having to deal with the tax forms.

    This leads me to a few questions:
    -If we close in Jan. will we need two gift letters?
    -Will this look bad on an application?
    -Would it be simpler to give my spouse $10k and me $10k sooner so it is seasoned?

    1. Hi Nick:

      I’m going to go ahead and take these in order.

      Transfers to you on two different dates would require two different gift letters.

      No. Lenders don’t care how you get the money as long as it’s legally sourced.

      The only time you would have to worry about seasoning of the funds is if you were getting an FHA or VA loan, for example, where we need to see a bank statement that shows the transaction clearing your father’s account in order to comply with government requirements. Other than that, we would just need documentation of the transfer which we can go over with you. I hope this helps! For more advice on your personal situation, you can go ahead and speak with one of our Home Loan Experts at (888) 980-6716. Have a good day!

    1. Hi Kelley:

      Yes, you can. If you’re interested in going over your options, you can get started online through Rocket Mortgage or give one of our Home Loan Experts a call at (888) 980-6716. Have a great day!

  22. Looking to purchase a home here soon. Credit score between 585 and 610. I’m going FHA. The house is 199,000. I Have To put 3.5 % Down.. My Mom is willing to gift me the downpayment but I’m confused on when it states some of the money has to come from me. Can I get gifted my entire down payment? She is willing to do bank statements and everything..

    1. Hi Jennifer:

      We may need to update this article. I will take a look. At this point, you don’t need to contribute anything and you can be gifted your entire down payment on an FHA loan. If you want to get started, you can do so through Rocket Mortgage or by giving us a call at (888) 980-6716 where one of our Home Loan Experts will be happy to take care of you. Hope this helps and have a great day!

  23. my wife & I wonder, since we have separate bank accounts & we are getting an FHA mortgage, & the loan will be only in her name, if I put any large amounts in to her account for the down payment, can I just write a gift letter & show a copy of the bank statement showing the money withdrawn from my account? will this be considered a legal & acceptable way to hurry up and get all the down payment money into her account for loan approval?

    1. Hi Rodney:

      Yes, providing a gift letter, stating the amount of the gift and a statement that it doesn’t have to be paid back, along with a copy of both your withdrawal bank statement and her deposit slip is totally acceptable. Since you’re getting an FHA loan, you’ll also need to provide a copy of the canceled or certified check and verify that the money was in your account for at least 30 days before you transferred it to your wife. You can provide this evidence through bank statements. I should also mention that since she’s applying for a FHA under her name, if her credit score is between 580 and 619, 3.5% of her down payment needs to come from her personal funds. You can read more about down payment gifts here. I hope this helps!

  24. Hi my brother in law he give me 20k bank casher check for gift money for my down payment but they don’t want to give bank statement for security reasons so is required for bank statement for conventional loan?

    1. Hi Yuan:

      Yes, your brother will need to provide you with both a gift letter, which states the amount of the gift and a statement that it doesn’t have to be paid back, and evidence of the transfer of funds, which would either be your brother’s withdrawal slip and your deposit slip, or a copy of the check your brother gave you and evidence that it’s been deposited into your account. Since there is a concern of security, I would recommend that you use a copy of the check your brother gave you, along with evidence that you deposited that check into your account. For more information on down payment gifts, check out this article. I hope this helps!

  25. Hi
    my mom wanna buy a house and my step father said he need 20,000 as a gift but he agree to give us back later but i have a what happened if IRS ask me where this money come from my account i really wanna help my mom to buy a house but i don’t know what to do please help me

    1. Hi Nida:

      You can give her $20,000. You just have to report the gift to the IRS. The only thing is, they can’t give it back. If they do, you could both be culpable for mortgage fraud. I don’t recommend doing it if you want it back.

  26. My underwriter approved my loan but it has conditions, which the main one is some large deposits that are part of my savings as well as my monthly salary. The large deposits were in the form of cash and it was from casino winnings by my wife. She received cash and 1099’s. My broker feels this is an issue which I don’t since the money is traceable from a source. Any insight would be helpfull

    1. Hi Rob:

      If funding can be traced to legitimate sources, it’s generally not an issue. Especially if you have 1099s and evidence of deposit, etc. If you were using them as income, you would have to have a history, but it doesn’t sound like that’s the case. Hope this helps!

  27. Hello,
    My father-in-law wants to give my wife and I $5,000.00 gift for help on our down-payment for a new home. However, he will be taking a personal loan out to do so. He is determined that he wants to help in this way with no strings attached to us. Would this be allowable to use as a gift?

    1. Hi M.R.:

      This is allowed. The only restriction here is that the loan can’t come from you. If you want to go over your options, you can get a preapproval through Rocket Mortgage or give one of our Home Loan Experts a call at (888) 980-6716. Hope this helps!

  28. If my father is providing a 20% down payment as a gift on a conventional loan, will I need to provide any of my own money at closing?

    1. Hi Candice:

      In the scenario you’ve laid out, you don’t need to provide any of your own money at closing toward the down payment. There may be other closing costs associated with the loan. But you would be free and clear from a down payment standpoint. Thanks!

  29. I am trying to purchase a house owned by both my sister and mother. The asking is $250k and my mother said that she would like to give me her “profit” as a down payment. I am a FT home buyer. The house also comes with instant equity. Is this possible? Would this be considered a gift?

    1. Hi AR:

      Yes, this is possible and it would be considered a gift. These types of arrangements are known as gifts of equity. The requirements surrounding a gift of equity are different depending on what type of loan you’re looking at. I’m going to suggest you speak with one of our Home Loan Experts at (888) 980-6716 to go over your options. Have a good day!

  30. We are expected to close on our home Aug 15th. For gift money to not be documented when would you suggest it be deposited into my account and “seasoned”? so that a letter and documentation does not need to be supplied?

    1. Hi Erick:

      Lenders typically require verification of large deposits in the last 60 days. Anything older than that, you should be OK. Hope this helps!

    1. Hi Andrea:

      In some cases, if the deposit is either two months or 60 days old, it doesn’t need to be sourced as a large deposit with documentation, but it depends on your situation. One of our Home Loan Experts could give you more information at (888) 980-6716. Thanks for reaching out!

      Kevin Graham

  31. Hi there,

    We have been working with my mom to get help with a down payment for a house. Are there any downsides to a gift of one amount and family loan for the rest? Meaning she’d gift a portion, we’d have a loan from her (with proper paperwork), and a loan from a bank.

    I have read some articles that say either gift or loan but don’t do both but I don’t understand why.

    Any help would be appreciated!

    1. Hi PPW:

      If you’re getting a gift from a family member, mortgage investors require there to be a statement made along with the gift that it legally doesn’t have to be paid back. So getting a gift from a family member and a loan from the same family member throws major red flags for lenders. If you tried to do it this way, you would most likely run into issues. If you want, you can talk to one of our Home Loan Experts at (888) 980-6716 to go over the best course of action.


  32. My son might be buying real estate soon. In Dec 2017 I set up a Joint Savings acct with him and put in some money. Will the Underwriters have any issues with this type of funds for a down payment. If I need to add more money to the Joint account would there be a 60-90 day questionable period.

    Appreciate your help,

    1. Hi Jennifer:

      Large deposits are typically always questioned. What’s considered a large deposit depends on the type of loan he’s getting. Sometimes it’s 1% of the loan amount and sometimes it’s over 50% of their monthly qualifying income. I’m going to recommend your son speak with one of our Home Loan Experts by calling (888) 980-6716. They would be able to go over this in much more detail.

      Kevin Graham

  33. We agreed to gift our son and his wife money so they could buy a home. Nothing is in writing, but my son intends on gifting it back someday at his own timing. Even if it takes years.

    We didn’t know we’d have to sign something that says “no repayment is implied”. Now, morally I don’t know what to do. Most people would say this is silly and I can do grey areas, but I don’t want to lie, since technically my son did say he would gift it back.

    Is this still grey? I have no loan agreement and technically he could just walk away, but verbally I know he will try to gift it back, which we thought would be okay.


    1. Hi Darin:

      I can’t speak for lenders that hold their own loans indefinitely, but typically if you get a loan through the major mortgage investors like Fannie Mae, Freddie Mac or FHA, you’re going to have to sign something that says legally that it doesn’t have to be repaid. If they find out there was an agreement between you to have them pay it back, that’s considered mortgage fraud and you or your son and his wife could get in some trouble. The reasoning behind this is that the lender makes the loan on the basis that your son and his wife don’t have to pay this back and it won’t be a debt that they have to worry about at some point down the line in addition to their mortgage payment and any other debts. If you’re giving him the money, they don’t want there to be any legal liability for them to pay it back.


  34. I am soon going to do the down payment for the house. My wife has saved some money as cash in last few years. Can i use that money as closing cost. what should be the process for the same? Can i deposit it in the bank account… Do i need a gift certificate for the same?

    1. Hi Amit:

      It depends on if she wants to put the money in your account for a while. If you were going to get it closer to closing, you should probably do a gift letter. It’s worth noting that different lenders have different policies. If you’re interested in looking into your options with us, you can give one of our Home Loan Experts a call at (888) 980-6716. Hope this helps!

      Kevin Graham

  35. Hi there,

    If I received money from someone that isn’t going to be used toward the down payment in any way, but it exceeds 50% of my monthly income, do I still need a gift letter for it? Pretty much if someone wired me money and it was coincidentally at the same time that I was closing on a house, would that be taken into account and need documentation?


    1. Hi KD:

      Every situation is different, so I’m going to recommend you talk to one of our home loan experts at (888) 980-6716. I can tell you that in general, large deposits over 50% of your monthly qualifying income need to be verified. However, the documentation necessary may or may not be a gift letter.


  36. Hi,
    Firstly, thank u for this wonderful forum – I’ve already learned a lot from the other Q & A’s. My question (actually 2) is as follows, my husband and I are about to purchase a house. I have money in my account that I would like to “gift” my husband towards this purchase. However, we are not legally married (we were married in a religious ceremony but not civilly for various reasons). Would the bank accept that this is a loan from a wife? (We have been together for 4 years now, but don’t file taxes together). I understand the loan has to be from a close relative, hence the question.
    Second question is, I wouldn’t be able to be on the mortgage, as I don’t have a good income and it would complicate things, but can my name be on the deed? Or would that be a problem?
    Thank u in advance for ur time and input.

    1. Hi Julia:

      All the loans we offer allow gift down payments from a domestic partner, so that would work for you. You can also be on the deed without being on the mortgage. Hope this helps! If you and your husband would like to go over your options, he can be preapproved online through Rocket Mortgage or give one of our Home Loan Experts a call at (888) 980-6716. We’ll be happy to talk to him. Thanks for reaching out!

      Kevin Graham

  37. […] such as alimony or bonuses that affect income. For monetary gifts, buyers must show a signed gift letter from the person who gifted money. Mortgage lenders can provide this form to […]

  38. My wife’s dad is building a small home and horse farm. My wife wants to put 100k towards the farm since we have horse with him. Can she be on the deed and not the mortgage? Also, it wouldn’t be a gift so not tax implications?

    1. Hi Brian:

      Your wife can be on the deed and not the mortgage. It might be a gift for mortgage purposes because she’s not on the deed. However, I would recommend talking to one of our home loan experts for more definitive guidance. You can get in touch with them at (888) 980-6716. As far as the tax implications, I’m really going to recommend talking to a certified tax professional.

      Kevin Graham

  39. I am currently trying to sell house. The buyers are friends and need 3.5% of $100k down for loan to purchase house. Does gift money for down payment have to be direct family? Can a friend give the 3.5% as a gift and just provide a gift statement?

    1. Hi Andrew:

      If you were to give them the gift, that would be considered a gift of equity since you’re the seller. Only family is allowed to do that. I’m sorry.

      Kevin Graham

  40. My wife and I are planning on getting a house soon. Hopefully by the end of the year. My dad recently told us that he has been saving money to gift us to use for down payment. He said he has $10K saved. However, most of this money is in a vault he keeps at home. Is it possible to use that money as a gift towards our downpayment even if there is no trace from a bank statement?

    1. That’s great news John! If you’re using gift money as part or all of your down payment, you’ll need your dad to write a gift letter to the mortgage company that makes it clear that the money is a gift and not a loan. However, depending on the type of loan you plan on choosing, the gift letter alone may not be enough evidence for the mortgage company, so your dad might be required to provide a bank statement in addition to the $10K. The best way to know for sure is to speak with one of our Home Loans Experts at (888) 728-4702. When you speak with one of our experts, you can discuss loan options and gift money requirements. I hope this helps! -Allison Hendricks

  41. I am buying a house that has a tenant for another 6 months. After that I will be moving in and it will be my primary residence. I am told that I must purchase it as investment property. Is that true? Also my sister is going to give me $14,000 to help with the down payment, but my lender said gifts (it’s not a loan) are not allowed for investment property. Is that true? Thanks for your help.

    1. Hi Kate:

      Unfortunately, both of those things are true. For you to purchase it as your primary residence, you would have to move in within 60 days. In this case, it would be an investment property. Gift funds aren’t allowed on investment property. I wish I could give you better news.

      Kevin Graham

  42. Hi, I am buying a home and my brother is helping me with $70K towards down payment. I will repay him back after a few years. Now my lender tells me that I can’t use loan money (even from immediate family member without interest) towards down payment. I can use gift money though. however, we recently heard that he is liable to pay gift-tax. What do you think in this case? Should we go ahead and declare this as gift and pay gift tax even though I am going to repay him the money in entirety in a few years (2-3 years) from now.


    1. Hi Sam:

      For starters, I would be very careful about this. He’s willing to give you the gift, you should take it as a gift. Otherwise, it could be considered mortgage fraud. I would talk to your lender. You can’t pay it back. As far as tax, you would have to talk to a tax professional for the best advice the IRS does have gift tax exemption limits.
      Kevin Graham

  43. If my dad wants to take money from his line of credit and give it as a gift to me for my down payment does that work?

    1. Hi Mandy:

      Depending on the type of loan you get, your father may have to document where he got money from, but the short answer is yes.

  44. I recently got married and we are starting to save for our first home. I was preapproved for a conventional loan but my husbands credit score is too low so currently the loan will only be in my name. I will be saving about 2k of my own money, and he will be taking a premature distribution from his 401k of probably 10k (8k after they tax it). Would it be a problem for me to deposit that now, 6 to 12 months before we buy a house? Should I wait to deposit it, or maybe make multiple smaller deposits? He will show bank statements and write a letter if thats required, I just figured it’d look better to have the funds showing in my account for a longer period of time. Whats the desirable way to go about this? I apologize if a similar question was already asked and answered. Thank you!

    1. Hi Sara:

      Since you are ready to document things, it doesn’t really matter when it goes in, but it would certainly be easier if you did it now and it was in your account for a while. That just makes things a little smoother down the line.

      Kevin Graham

  45. My husband was pre-approved for an FHA loan. I will not be on the loan. He and I have a joint bank account. We have automatic deposit from our employers, like most do I presume. 4 sometimes 5 times a month we withdraw cash from our account and leave the amount needed to cover our automatic payments and items that are paid through our check cards. We keep all of the excess, savings, cash at home in a safe. We have excel spread sheets documenting items that are paid in cash and items that are paid by via checking account/card on a weekly base. My husband is paid bi-weekly and I am paid weekly. Would the bank statements showing the withdraws and excel spread sheets count as verification for our down payment? If not would I be able to gift my husband the cash funds through our joint account through deposit back into our joint account? Also, if I am able to gift money to my husband, since it is a gift will I be required to pay taxes on the amount I give? Roughly 4300.00. We are working with Quicken and located in Nebraska. Sorry for all the complicated questions. I work graveyard shift and I’m not able to get a hold of anyone by the time I get up.

    1. Hi Autumn:

      There are some complicated questions here and I think it would be best if you talked to your Home Loan Expert that you’ve been working with. This gets a bit complex because you’re not keeping most of the money you have in the bank. I understand that you work the graveyard shift. I’m going to get this to our client relations team who can pass this along to your banker. If we can’t find a mutually convenient time to call you, we can try to work over email. I just want to make sure you get the correct information. We’ll be in contact soon.

      Kevin Graham

  46. Hi,
    My sis needs a gift amount of $50 k from my account. Now what will be the procedures I need to follow to lend this. Also will I have to give a bank statement of a month?
    Now the tricky part is I don’t have enuf money with me, so I’m getting it as loan and depositing in my account and sending it to her.
    We are planning to buy an house within a year. So will these transactions affect my mortgage, wen I apply for one in a year.

    1. Hi Rama:

      Since you’re borrowing the funds, you don’t need a bank statement. You’ll need a gift letter. Her lender can walk you through what needs to be included depending on the type of loan she’s getting. Also, make sure to keep any documentation regarding the loan. The lender may need to verify the source of the gift funds.

      Now to your second question. Giving a gift to your sister does not affect your future mortgage loan directly. However, if you’re still paying back the loan at that time, the monthly payments will be included in your debt-to-income (DTI) ratio. This could affect the amount of your preapproval. I hope this helps!

      Kevin Graham

      1. Completely wrong. Borrowing funds with the intent to payback would not be considered a gift. How do you pay back a GIFT?????

        1. Hi Billy Bob:

          He wasn’t getting get the gift. He was borrowing the funds to give to his sister. He needs that documentation.

          Kevin Graham

  47. I am planning to buy $500,000 house in Virginia within the next 6 months, with a conventional loan. I have a good credit score (around 800). My salary is around $70,000 a year. My parents is planning on giving me $150,000 gift for down payment. I am planning on putting my own $50,000 saving into the down payment as well. Together I would total up to around $200,000 in down payment for the house. This will be the first house I ever purchase.
    What is the best way for my parents to send me the $150,000 so it does not negatively impact my house loan?
    Since I have over 6 months before I buy the house, should my parents split that gift money up into smaller amount and sent it to my bank slowly every month?
    Should my parents send the entire $150,000 to my bank? If they can just send the whole thing at once, how early should they send it so it does not impact my loan?
    My parents are willing to write any letter , provide financial statements, and speak with the loan provider to prove that the money is a gift.

    1. Hi Anh:

      The exact requirements depend on what type of loan you’re getting. They’ll have to write a letter stipulating that it’s a gift and there are certain things that have to be in the letter. Beyond that, there’s nothing preventing them from giving you the money all at once. For certain types of loans, the money may has to be in your parents’ account for 30 days prior to transferring to you and this has to be shown through a bank statement. If you would like to look into your options with one of our Home Loan Experts, you can get in touch with them by filling out this form or calling (888) 980-6716. We would love to work with you!

      Kevin Graham

  48. Hello, my fiancé & I have made an offer on a home that has been accepted. We have already payed $4,000 in “good faith”money to the sellers & have also completed the inspection of the house. So far so good. The dilemma: Due to my Fiance’s financial situation involving a house in short sale with her ex husband, the mortgage will be soley in my name. We are receiving a hefty “gift money”check from my fiancé’s grandmother to assist with our 20% downpayment (we will be putting in 5% or more ourselves.) Is it possible for her grandmother (my soon to be grandmother in-law) to give me “gift money”? I know they have rules as far as who can actually gift the money, which to me, is a heavily flawed system that needs to be fixed. Opinions? Advice?

    1. Please note: this is a conventional loan, not an fha. My income (& debt to income ratio) is stellar as far as receiving the loan. The only issue I’m concerned about is the “Gift Giver”( my fiances grandmother) not technically being a “blood relative”to me.

      1. Hi Shawn:

        That’s definitely a bit of a gray area. I’m going to recommend you speak with one of our Home Loan Experts. They may know more about this and can give you better guidance than I can here. You can get in touch with them by calling (888) 980-6716.

        Kevin Graham

  49. My husband has sold off some of his personal property to raise money for a down payment for an FHA loan, receiving cash for those items. Since the loan will be in my name only, he will also be gifting me some of the funds for the down payment. Should he deposit the cash received from these sales (about $500) into his account and then transfer to my account? Or, can I deposit the cash directly into my account? Closing in 2 weeks!

    1. When it comes to gift funds, the FHA requires that the gift be in the donor’s account for at least 30 days with bank statement proof. You may want to contact your lender about how you would handle this. It is a relatively small amount of cash.

      Kevin Graham

  50. My parent is offering to help cover our down payment, giving a gift likely in excess of $10,000. They are more comfortable with providing this gift at closing via a wire transfer from their account. I assume a letter and possibly bank statements will be required for this gift, but is it possible for them to provide these funds at closing directly from their account? Or will the lender require the money be sent directly from my account.

    1. Hey, Alex! Thanks for reaching out. The funds can be provided at closing. As far as the method of transfer, it would be best if you spoke with one of our home loan experts to get the most accurate information. You can get in touch with them by calling 888-980-6716. Thanks, and we hope this helps. Good luck with the home buying process!

  51. If somebody gives you money for a gift to put down on a house and things don’t work out they get mad can they put a lien on my house because they want their gift money back and they signed a release saying that this is a gift not a loan from my mortgage company

    1. Hi James:

      The person can’t put a lien on your house if it’s a gift. There should be documentation that it’s a gift. Particularly if you had a mortgage, the mortgage company has very specific requirements for the gift letter that state the donor can’t have it paid back.

  52. My fiance and I are buying a home. I am providing the down payment, he is going to be on the mortgage alone. We are both going to be on title. The mortgage company is insisting that I compete a gift letter in order to proceed. Because I will be wiring the funds directly to an escrow account which has both of our names on it, I am in fact, not “gifting” him any funds. The money is my contribution toward a mutual purchase of which we will both benefit. Why is the lender insisting that this is a gift?

    1. Hi Shannon:

      You’re not a party to the mortgage transaction. Therefore, by providing the down payment, it’s considered a gift. I know it sounds a little odd, but it’s the truth.

      Kevin Graham

  53. My mother is gifting us 9.5K of the 10.5K downpayment for a conventional loan on a 210K house. The broker says that in addition to a gift letter, they need her last 30 day bank statement. The above article says that FHA loans require the bank statement, but this is a conventional loan. I hate to hassle my mom and as recipients of a gift want to make this as easy for her as possible. Is it normal that she be asked for her bank statement for a conventional loan?


    1. Hi Angie:

      Different lenders have different policies. I don’t know that I can give you a definitive response as to what’s normal. FHA requires a bank statement in many cases, there’s nothing preventing other lenders from requiring this on other loans.

      Kevin Graham

  54. For my birthday I received $4000 in cash from multiple parties. I deposited it into my bank and now the lender is asking for a letter of explanation. What do I say to explain this, as it is cash and not checks?

    1. Hi Greg:

      You have some generous friends and family. 🙂 It doesn’t function as a gift because you would need the checks. I would just be honest and explain it was birthday cash. They can then tell you if they need any more information or if it will work.

      Kevin Graham

  55. Hi there, my wife and I close on our home in 18 days. FHA Loan for a $200k home. I make $100k yearly. I am taking money from my 401k and selling a mini-barn to get most of the downpayment money. My mother-inlaw is gifting us about $2500 for the remaining amount for the downpayment, and she is fine with signing a gift letter and doing whatever is needed, however she dont have a bank account and the funds she will give us is coming from her income tax money that she got a few months ago. She will just be giving us cash. Will that be a problem?

    1. Hi Erik:

      I’m going to have someone reach out to you because there are very specific FHA guidelines in this area and I see you’re working with us.

      Kevin Graham

  56. I have a hair salon, only credit card get deposited into my account I keep the cash, I made a 9500 deposit in cash to pay a car loan how would that affect my mortgage I am closing in few days

    1. Hi Hasan:

      I would talk to your lender. They would probably have to verify the source of the deposit of that size. You can just start by letting them know what it was for and go from there.

      Kevin Graham

  57. I gave my son $8000.00 as a gift for his house loan. This loan is an FHA loan. Unfortunately, he and I did not know that the cash (actual cash I kept in a safe) I deposited into my checking account needed to be there for 30 days before the check I gave him was deposited. I can provide documents the money was deposited, check cashed and cleared my account. The bank he is getting his mortgage through tells him 11 days before closing he will not be able to get the loan because this was a cash deposit into the donor account and was not there 30 days. Is there any exemption to the donor rule? My son will not be able to purchase the house and I feel really bad about it.

    1. Unfortunately, FHA rules are set by the government through the Department of Housing and Urban Development and they’re pretty hard and fast. There’s no way around this.

      My advice to you and your son would be to see if you can get the sellers to delay the closing a few more days. They have a good offer in hand. It would be a pain in the butt to put it back on the market. I doubt they want to wait for the underwriting process with a new buyer.

      It may or may not work, but it’s worth a shot.

      Kevin Graham

  58. I am currently eyeing for a house to buy for the first time. And my brother from abroad wants to help me for the downpayment. Can he send me a lump sum amount like for example $100,000. wire transfer to my bank account here in US, while im still searching for a house to buy? What are the letters/documents needed if the right time comes that i need it for the downpayment. Plus, will the bank question the big amount wire transffered to my account?

    1. Hi Justin:

      Since the funds are coming from outside the country, I’m going to recommend you talk to one of our home loan experts to see about the best way to source and document that. For the lender, you would definitely need to have a gift letter and possibly some other items depending on the type of loan you’re getting. In terms of whether your bank would question it, that something you would have to talk to them about. However, you can talk to one of our Home Loan Experts by filling out this form or calling (888) 980-6716.

      Kevin Graham

  59. I am doing a conventional loan and needed 10k for closing. Our closing date isn’t until 4/12/17, our loan officer said we can only get a gift of 3k. The plan was to have my Dad gift us the full 10k, if we would get the 10k deposited into my bank account now would that be considered a “gift” since closing isn’t for another 50+ days away? Thanks.

    1. Hi Justin:

      Without knowing your full situation, I can only guess is to why your wonder wouldn’t let your father give you the full $10,000. There are situations in which a client has to make a minimum contribution to their down payment. I’m going to recommend you reach out to one of our Home Loan Experts to get an idea of what your options might be in this situation. You can get in touch with them by calling (888) 728-4702.

      Kevin Graham

  60. Hi Kevin!

    My mother wants to give my husband and I $20k towards the down payment on our first home. Now, we’re not going crazy expensive with houses (Looking at $190k and under in Frederick, Co. MD). Her funds are currently in her retirement account where she would like them to stay until we’re ready. Should I request her gift more than 60 days before we start looking at applying or would it just be easier to let the banks talk? She is at retiring age and the funds are available to her without penalty.


    1. Hi Katie:

      Since she’s using her retirement funds, we would just need to see something that shows evidence of withdrawal from her retirement account and deposit into yours. If it’s an FHA loan, we would also need to see a statement from the account that shows the balance before and after the withdrawal. I’m not sure what you mean by letting the banks talk. I hope this helps answer your question.

      Kevin Graham

  61. My wife and I are gifting $20,000 to my daughter for a down payment on her first house. It is a conventional loan. We have each signed a gift letter, but the lender is wanting the account numbers of our checking and savings accounts. I have reused to give this information as I believe it is too intrusive, and I don’t want my account numbers floating around the mortgage company, with all the hacking going on these days. Why do they need my account numbers when my daughters bank statements show the deposits coming from my account with the last four digits of my account number showing on the statement?

    1. Hi Mike:

      All mortgage lenders that underwrite loans backed by Fannie Mae and Freddie Mac have to follow a strict set of underwriting standards. Those standards include being able to source where the gift funds come from, including bank account numbers. Your concern about security is understandable, but this is also a highly regulated industry. We treat your information as any other bank would treat it, with the strictest security and confidentiality. I can only speak for our policies, but I’m sure the standards are similar at other banks. Only those that need access to your information ever get a look at it. We only store what we absolutely need and all of your information is encrypted when you share it with us. Everyone is vulnerable to bad actors, so I’m not going to say that security breaches never happen, but lenders take every precaution to make sure your data doesn’t get out there.

      Kevin Graham

      1. Hi Kevin,
        I’m in a similar situation on the receiving end of the gift to buy a first home. My mortgage broker has not only asked for the gift letter with the donor’s account information but also a copy of the donor’s bank statement showing the funds that went out (aka the written check). Is the copy of the bank statement necessary? And is this common practice to ask for the donor’s statement?

        1. Hi Julienne:

          We would ask for evidence of the transfer of funds on all loans. This would be something like the deposit and withdrawal slips. As for the bank statement part, the government has that requirement in place for FHA loans because they require that the funds be in the account of the donor for at least 30 days. I hope this helps!

          Kevin Graham

          1. I have a person to gift money to me, but they don’t want to give a copy of their statement for security reasons and they don’t want anyone knowing how much money they have in the bank. Would a letter from their bank stating they have the amount they are gifting in their account for more than say 90 days suffice in leu of giving a copy of bank statement?

          2. Hi Frank:

            Unfortunately, if it’s an FHA loan, they have very specific guidelines and it needs to be a bank statement. If that’s not an FHA loan, no bank statement is required, but they have to be able to show withdrawal and deposit slips or a copy of the check with evidence of deposit, for example. I’m sorry. It’s an FHA rule.

            Kevin Graham

  62. Hi Kevin,

    I need some guidance. My parents are willing to put forth the $70 K down payment for my first home. The problem is it’s all in cash (putting cash in the safe for decades) . How can an Underwriter determine where those funds are coming from if it’s cash, even if they were to compose a gift letter?

    Would they have to deposit that 70K in their bank account first, before giving me that gift… And if so will they need to claim all that money with the IRS and pay Taxes on it?

    If they do have to pay taxes on it… Would it be wise for me to deposit into my account in small increments over sever months?

    Thanks !

    1. Hey Matthew:

      The gift tax limit as set by the IRS is 14,000. Your parents would have to pay taxes on your down payment. Depending on the loan you’re going with, the funds would need to be sourced, so they do need to go in a bank account. However, I’m going to recommend you talk to one of our Home Loan Experts about the best way to do this. You can get in touch with them by filling out this form or calling (888) 728-4702.

      Kevin Graham

      1. I came across this post looking for some information on setting up an escrow account for my sister’s down payment gift. I wanted to be a little informed prior to meeting with my accountant.

        $14,000 is the maximum amount your parents may gift you without counting towards their estate tax. They may actually give you up to $5,340,000 without paying any gift or estate tax. Most first year accounting students, could walk you and your parents through it.

        Always be wary of advice online. Always speak to a qualified expert. Clearly, a google search can verify “Kevin G.” is incorrect and highly inaccurate in stating “your parents would have to pay taxes on your down payment”.

        1. Hi Christopher:

          I appreciate you bringing this to my attention. I did find similar information to the figures you’re talking about upon further review. That being said, I do want to assure you that we take getting things right very seriously. The information I had been basing that answer on came directly from the IRS website. I do find it interesting that they talk about a gift tax exclusion on that page without a reference to any other limit, but I don’t think you would disagree with me that the tax code is incredibly complicated at times. We do try to find the correct answer for our clients, but I would never discourage people from talking to an accountant because every situation is different in taxes as it is in mortgage.

          Kevin Graham

        2. I second Christopher here; Kevin G is wrong. Except that Christopher has outdated information – for 2017, the estate/gift lifetime exemption is $5.49 million per individual, or $10.98 million per married couple (aka person(s) giving the money). The $14,000 annual gift tax exclusion (for the person receiving the money) draws the line where you have to file paperwork or not (so the IRS can keep closer tabs on those lifetime limits; $14,000 or lower does not count toward the limit at all). Source: [ the internet – aka do you own research 🙂 ]

          1. Hi Mike:

            I really appreciate the combined effort of you and Christopher here to provide your fellow readers with the most up-to-date, accurate information. It’s probably a good idea for all of our readers to consult a tax professional for any advice regarding gift funds or other tax issues.

            Kevin Graham

  63. My sister and brother in law gave me 6K to buy a house. They are not in USA. Can I use it for down payment?. What are the documents do I need to provide?. Mine is a fha loan. How many days prior to clossing should I have it?. I am clossing on 28 of Feb.
    Thanks in advance

    1. With an FHA loan, the funds have to be in the donor’s account for 30 days. I’m more concerned about the fact that the payment is coming from outside the US and I don’t have the expertise to be able to tell you how that process might work. If you call one of our home loan experts, they should be able to give you better information. You can reach them at 888-728-4702.

  64. I gave my sister 15k to help her buy her first home. The underwriter is saying that I have to give them a copy of my bank statement and copies of the executed check. Is there a way around this? Will / Can they deny the loan if I refuse to give them a copy of my bank statement and I give them everything else?

    1. Hi, Nick!

      This type of requirement depends on the loan program that it is in. Ultimately we need to see if you took out a loan under your name to provide the money to your sister. For more information on how this works, please give us a call at (888) 635-1576 and one of our home loan experts can answer all your questions for you.

      Have a great day!


  65. If my parents gift me down payment, can they get those funds from a retirement account into there checking and then into a check for me? Can a Fried or coworker git the money?

    1. Hi Brian:

      Your parents can gift you a down payment from retirement funds. Depending on the type of loan you’re applying for, they may be required to show a beginning and ending balance in their account. The FHA also allows you to receive the gift from a close friend if they have a clearly defined interest in you. I hope this helps.

      Kevin Graham

        1. Hi Deb:

          It’s really hard to tell you who would or wouldn’t qualify because these things are decided on a case-by-case basis. I think the best thing for you to do would be to reach out to one of our Home Loan Experts and go over your situation. We would be able to tell you what could not or could be done from there. You can get in touch with them by filling out this form or calling (888) 728-4702.

          Kevin Graham

  66. Isn’t that kinda how traditional mortgages work? You sign a promissory note, the bank cashes it for the principal and interest, credits an account, keeps the rest as a gift, pretends to loan money out of their pocket, when really the Borrower funds (gifts) the loan through the note.

    Then it gets converted to stock where it makes more gift money on the secondary market, then ends up in a REMIC Trust, gifting more third parties.

    Liability & Assets.. Gifts! lol

    1. The lender has to be able to source the funds. Additionally, FHA loans require that lenders check that the money has been in the donor’s account for at least 30 days.

      Kevin Graham

      1. If the underwriter and If the lender has a verified Bank tatement, for the past 30 days with a beginning and ending balance, and only last 4 digits showing, and gift letter in hand, showing a different name on the account should be proof enough. I dont trust Fanny May and its political ties.

        1. Hi Dave:

          Fannie Mae actually doesn’t require a bank statement. However, we would need a withdrawal slip from the donor and a deposit slip from the client or a copy of the check and evidence of deposit, for example. Hope this helps!

          Kevin Graham

  67. For fha loan.when my lender sent my loan to the underwriter there was red flags.can that be because of my down payment funds aren’t in the bank at the time. Or does the money for down payment and closing need to be in there all at once

    1. Hi Justin:

      Since you’re getting an FHA loan, the gift funds have to be sourced which means it has to be in the donor’s account for at least 30 days. This would include any gift funds you using for a down payment as well as closing costs. The exception is if the donor borrowed the funds. They would just have to be documented.

      Kevin Graham

  68. My mom has given us 20% down payment on a conventional loan. She has no problem signing a gift letter, and having the underwriter call her bank to verify funds, but she is dead set against providing bank statements as she feels this is too intrusive and personal. What else can I do? We can’t wait 60-90 days for seasoning. Can this happen with a phone call?

  69. This is a question. My wife is getting a gift money from her aunt. In return my wife is giving to me for the down-payment for the house. My wife is not on the mortgage. Will this be a issue?

    1. Good morning, Anthony:

      I see you’re working with us at the moment. I’m going to put you in touch with one of our Home Loan Experts to help with your question.

      Kevin Graham

  70. Hi. My wife and I are ready to purchase a home on a conventional loan and want to put 5% down.

    6 months ago I got a personal loan to consolidate credit card debt at a lower rate and to help build my credit score a little bit more. We have additional funds left over from the personal loan that have been sitting in the bank account with the others savings we have. My wife is not on the personal loan.

    I have read that personal loan funds cannot be used, but they have been in our account for 6 months. Also, since the funds are all together in one savings account, what issues may arise from using the funds from the savings account? I have also read that when funds are “seasoned” for 60-90 days, personal loan funds can potentially be used?


    1. Hi Mort:

      Normally, you cannot use personal loan funds, but since they’ve been sitting in your account so long, that would be a good question for one of our mortgage bankers. You can get in touch with them by filling out this form or calling (888) 728-4702 and they’ll be able to help you.

      Kevin Graham

    1. Hi Carm:

      Some gift letters have the donors’ account number because they need to see bank statements with evidence of transfer of funds in order to qualify for an FHA loan.

      Kevin Graham

  71. Hi Kevin,

    I’d like to give $12,000 gift to my cousin brother to help him out with his down payment now in 2016. Is there any negative impact on me if i’m planning to buy a house myself in 2017?

    many thanks in advance

    1. Hi Becky:

      There wouldn’t be any negative financial impact related directly to the gift. You just have to make sure you have enough money for your own down payment and reserves when it comes time to buy your own house.

      Kevin Graham

  72. My wife and I are buying our 1st home in NC. We are in the due diligence period (day 2 to be exact) & my lender just called me to let me know that my gifted funds for our down payment won’t be accepted. The funds were gifted to me from my boss and her husband because they are like family to us since our real families are not. The lender said because she is my employer and she hasn’t done this for other employees (even though it’s out of their personal checking account) that it cannot be accepted. Please help we are supposed to close in 60 days (58 now)!

    1. Hi Justin:

      Unfortunately, the regulations make no exceptions in this instance. In order for the gift funds to come from an employer, it must be an FHA loan. That’s something you can look into, but unfortunately, you would have to start over.

      I’m really sorry I can’t give you better news.

      Kevin Graham

  73. Hi Kevin, this may be a repeat comment but after writing my question and hitting post I am not seeing my post anywhere, so I’m not sure if it went through. My parents want me to gift them 300k for a down payment on a house in CA that we will be moving into together. I have told them that I would be uncomfortable gifting even 100k (which is what we had initially discussed) without me name being included on the deed. They have vaguely told me that for a slew of tax or loan reasons, I cannot be included on the deed during the initial buying process, but they a can easily add me on after the fact. I have tried looking into the matter and what rules there are surrounding gift money and quitclaim deed but I am having trouble finding information regarding my specific issue. What I have found, however, is that both of these processes are extremely complicated and it does not seem to me that it can just be a simple as “adding me to the deed” after we’ve bought the house. My parents plan on paying me back 200k when our current house sells, but with the stipulations of the gift letter, I am not even sure if I can legally accept repayment from them and all of this is naturally very unsettling. Is there any light you can shed on my situation? Thank you.

    1. Hi Sem:

      In order to help our pages load faster, comments don’t show up on the front end until after 24 hours.

      As to your actual question, it’s possible to add you to the title after the fact. There is some title work involved, but it’s not uncommon at all.

      You are correct in that you can’t legally except repayment of the gift. What you’re talking about is actually a loan. As far as leaving you off the loan in the first place, the only thing I can think of is that your credit score might be too low or your debt-to-income ratio too high for them to qualify with you on the loan. I can’t plausibly come up with tax reasons why you would be better left off, but that’s not my field of expertise.

      Kevin Graham

  74. My husband and I are about to purchase a home from my mother. My step father is gifting us the down payment. The lender is saying that anything over a 620 credit score can be 100% financed with no out of pocket. I’m just a little confused about the process. The home is worth 250,000 but we are buying it for155,000.

    1. Hi Tracy:

      Since you’re buying the property that far below market value with a gift of equity from your mother with a conventional loan (that’s the reasoning behind this 620 credit score requirement), there would be no need for a down payment. If your stepfather still wants to give you additional money for the transaction, he can do that. The one thing I would ask about is closing costs. However, it’s not uncommon to roll those in over the life of the loan. If that’s what your lender is doing, you wouldn’t pay anything out of pocket at closing.

      Kevin Graham

  75. I was recently asked to sign a gift letter for $45,000 I am lending, not gifting, to a family member for a down payment on a home they are buying. They plan to return the money when their primary home sells. When I called their lender to explain I couldn’t sign a gift letter since it was not a gift, and signing the letter would be falsifying a document. Now suddenly they said they don’t need the letter. I’m curious why now they aren’t requiring them to explain a $45,000 deposit when their ANNUAL income is $75,000. I’m concerned their doing something unethical to get the loan through. Any advice would be appreciated!

    1. Hi Maria:

      I would be extremely leery of this. The reason the lender wants the gift letter is that people are not allowed to qualify for a mortgage loan with proceeds from any other type of loan. If you were to sign that gift letter, part of the terms would be that the money wouldn’t have to be paid back. That’s obviously not what you want. They would have to verify a deposit as large as $45,000, no matter where they get it. I’m not sure what’s going on here, but if I were you I wouldn’t touch it.

      Kevin Graham

  76. So I won’t begin my house hunting for another year and a half to two years from now. My parents are going to be gifting me money to help with my initial down payment, which would be the maximum 14,000 each/year to avoid being taxed. Having almost 2 years to accumulate money and obviously having no idea what the address of a property that I’m interested in purchasing is, how should this be worded in a formal documented gift letter. Any other information would be greatly appreciated as far as how I’m going about this type of assistance for my down payment.

    1. Hi Bob:

      If the time period is that far out, we recommend having them give you the gift and sticking it in a savings or CD account. That way, you have it available to you when the time comes. When you’ve found the property you wish to buy, we would need a gift letter from each of their parents at that time documenting where the money came from. After that, it shouldn’t really be a problem. Hope this helps!

      Kevin Graham

  77. Hi, I have a few people that are ready to gift me funds for my row payment. I was thinking of them all just giving my mother money and my mother gift it all too me as one lump sum. Would each individual person have to verify their source of income? Also would I have to verify the cash that I am putting into my account to pay the due diligence and earnest money? I have tons of additional questions. I have the cash for my down payment, but putting it all into my account scares me since everything has to be throughly verified. Please help me as my tentative closing date is set for 10/13 and I am nervous !

    1. Hi Tiana:

      A lot of this depends on the type of loan you’re getting. My advice would be to go ahead and reach out to one of our Home Loan Experts at 888-728-4702 and they can help go over any questions you have.

      Kevin Graham

  78. We are buying a home and are putting down 20%, I have just deposited a total $7500 in cash from birthday gifts and wedding gifts from multiple friends and family (40 plus members) that we have saved up over the past 3 years. I am pretty sure this will be flagged by the underwriter, but not sure how to document the gifts.

    1. Hi Quy:

      I think the best way to handle this is to talk to your lender. A letter of explanation might work well. It doesn’t seem practical to get gift letters from that many family members. See if they’ll let do a letter of explanation.

      Kevin Graham

  79. My grandparents had set up an Irrevocable Trust Fund years ago and there is $30,000 in the account that I have access to. If I use half of this amount towards a down payment on a house, is a gift letter required? My plan is to use half for the down payment, $5,000 towards closing costs/additional expenses (as needed), and keep $10,000 for mortgage/utilities in the first few months of home ownership. Can you foresee any issues with this that my bank might question? Any help you can offer would be super great!

    Thank you!

    1. Hi Amanda:

      If you have access to the trust, it’s not a gift. They’re considered assets that are already available to you. Lenders will need to see documentation on the trust. They look at the terms to make sure you’re allowed to withdraw the money, make sure you’re the beneficiary, etc. As long as you can provide what they ask for, there should be no real issues.

      Kevin Graham

  80. My husband and I are getting a house what if we get gift money from his parents and we need to show a bank statement from them but they got the money by getting a loan?

    1. Hi Jen:

      There’s nothing preventing them from getting the money that they give you through a loan. The only stipulation is that if it’s an FHA loan, the money has to be in their bank account for 30 days.

      Kevin Graham

  81. My mom is going to give me 33k to help with my down payment. I’m thinking of letting her write me a check for 9,999 take the rest and giving it to other friends to write me a check for 9999. I’d go to friends that have more then 10k in their bank account so they can deposit it after the check clears for me. Just incase I need a gift letter it won’t show a 10k deposit then a 10k take out. Also is it 10k the irs red flags or is it 13k. Ppl keep saying 10k is a red flag/ taxable

    1. The IRS gift tax exclusion limit for 2016 is $14,000. Anything more than that and your mother would pay taxes on it. Hope this helps!

      Kevin Graham

  82. Hi,

    My boyfriend and I are buying a house together, but my name will be the only one on the (conventional) loan. Both our names will be on the title, though. My boyfriend will be providing 3/4 of the downpayment and my bank is asking him to deposit that money in my account as a gift, 4 weeks before the closing date. What tax implications could this have, if any?


  83. hi , my husband is going to buy a house through conventional loan, i want to gift him money, i have money in my account but it is not from employed income, can i gift that money to my husband.

    1. Hi Manju:

      It’s not required that the gift funds be from income, just that you have them and can show a record of transfer from you to your husband. I hope this helps!

      Kevin Graham

  84. I’m engaged, and my future father-in-law wants to gift the down payment money for our 3.5 FHA loan. I can provide documentation for the engagement, bank statements from my future father-in-law, and a letter of gift documenting the gift and purpose of an engagement gift. Will I be able to use this money?

    1. Hi James:

      This might be just a bit complicated because he’s not yet technically your father-in-law. However, I’m going to have someone reach out to go over any options you have.

      Kevin Graham

  85. If I am purchasing a jointly property with my fiance using our joint bank account in which he funded majority of the funds to make the down payment. The mortgage will be under my name only. Does the underwriter need him to provide a gift letter to me? If yes, will the gift letter trigger any tax implications on my end?

    1. If you would normally have access to the bank account jointly, it’s not really a gift. It’s only a gift if it is transferred into your account from his. Since it isn’t a gift, there shouldn’t be tax implications. Hope this helps!

  86. Hello,
    Am planning to buy a house in NJ with FHA program. My sister will gift me the downpayment money. She will give a bank statment and all. Now my question is will the lender still review my bank account and question my deposits that do not come from my direct deposit salary?

    1. Hey Carlos:

      As a general rule, lenders have to verify the source of all large deposits. So your bank account is reviewed for asset verification purposes.

      Kevin Graham

  87. I am getting a 30 yr conventional loan with a 5% down payment. My father is gifting me the down payment – Will the letter be enough. My father is very “old school” and does NOT give his banking information over easily.

    1. Hi Linda:

      For a conventional loan, it’s not necessary to see a bank statement. We just need either a copy of the withdrawal slip and your deposit slip or a copy of the check from the donor and evidence that you deposited it into your account to use the gift funds.

      Kevin Graham

      1. My understanding on using a gift for the full 5% of a conventional loan is that at least 3% of it needs to be your own money. In other words, you cannot technically receive a gift of 5% and use only that for your down payment. Is this incorrect?

        1. Hi Eric:

          Other lenders may have different policies, but I can summarize our gift funds policy when it comes to conventional loans. If you’re buying a one-unit primary property, your entire down payment can be from a gift. If you’re buying a 2-4 unit primary property with a down payment of less than 20%, you have to contribute 5% of the down payment from your own funds. You would also have to contribute 5% if the down payment was less than 20% on a vacation home. Finally, the use of gift funds is not allowed on investment properties. Hope this helps!

          Kevin Graham

      2. What about an FHA loan? I’m in the same boat worth my brother, he doesn’t want to give up his bank statement. His financial advisor told him they will monitor his account for 30-45 days after closing.

        1. Hi Dawn:

          I’m not sure about the account monitoring, but the lender does need to see a bank statement going back 30 days. These are FHA policies that are really beyond the control of any lender.

          Kevin Graham

  88. Got 2000 from my boss as a gift ; he’ll furnish a gift statement , but I doubt his bank account. For an FHA Loan, do they absolutely require a bank statement?

    1. Hi Alina:

      The short answer is yes. I can tell you that all lenders take confidential information very seriously, but this is an FHA requirement.


  89. My grandparents don’t want to provide full bank account numbers for the FHA downpayment gift. can we get the statements and black out everything except the last four digits of the account number? we have the check and gift letter.

    1. Hi KT:

      Unfortunately providing a bank statement means providing the entire statement including the account number. However, I can tell you that all lenders that do this treat this type of information with the highest security and strictest confidence. This is an FHA requirement.

      Kevin Graham

  90. I’m buying a home currently and this will be my first purchase. However, I have a co borrower and now do not qualify for any down payment assistance because my co borrower currently owns a home. Are there any other programs that could assist me?

    1. Hi Mills:

      We have limited down payment assistance options, but I’m going to suggest you talk to one of our Home Loan Experts that can go over your situation and see what we can do. You can do this by filling out this form or calling 888-728-4702.

      Kevin Graham

  91. I’m trying to buy a home in S.C. The down payment is coming from my parents who are gifting us the money, not loaning it to us. Can I use the entire gift, 30,000 as my down payment or is there some rule where part of the payment must come from my account?

    1. Hi Mike:

      You can use the entire gift. The only thing you have to worry about is that on an FHA loan the money has to be in the donor’s account for at least 30 days before it’s used for the down payment. Hope this helps!

      Kevin Graham

  92. Hi,
    I got married last year and my parents live in another country, but they came to visit for the holidays and gave us the wedding gift in cash. We want to use it for our mortgage downpayment, would the gift letter be enough or do they have to provide a bank statement from their country?


    1. It’s probably safest to provide a bank statement if they can get their hands on one so there’s no delay in the process.

  93. I am currently pre approved for an FHA loan, however we’ve reached a snag. My broker says that I need my donor to provide statements which my mother is happy to provide however she wants to black her account number. The broker says that they cannot accept “altered” documents, which raises a red flag for us. Why do they need her account number and is there another way to receive my gift without her having to give up sensitive information? Would it be better for me to just accept the gift now then she would just be required to provide gift letter (according to HUD guidelines)?

    Help, please and thank you.

    1. Hey, Cora! Working with gift funds can be a little complicated. Please use this link and talk to a home loan expert. Depending on your specific situation, she may need to reveal this information. Thanks, and we look forward to helping you!

  94. Hello,
    My parents are separated, both of them will be gifting me the money for my down payment. My dad was going to deposit the money into my moms account, he of course can write a gift letter. My mom will then get a cashiers check and also write a gift letter. Is this acceptable?

    1. Hi Layla:

      As long as they meet the other gift guidelines (gift letter, being able to source the funds, etc.), there is no limit to the number of gifts you can receive.

      Kevin Graham

    2. My husband and I are gifting some money for a down payment to my daughter and future husband. We will be giving her a check from me for 14,000 and a check from her father for 14,000 from our joint checking acct. We will give him a check for 5,000. They both have separate checking accts. Will we have to fill out 3 separate gift letters? We don’t want to give her one check for 28,000 for tax purposes. Come closing time which is Sept.9th will her future husband be able to give her a check to put in her account to they can write one check at closing. Can’t she just make two separate slips out for the 14,000 each we are giving and deposit it in her acct and he just deposits his in his checking acct. What can happen if they don’t open separate accts for each check? Wouldn’t the lender see the checks deposited in their accts.

      1. Hi Kaye:

        I would fill out separate letters to be on the safe side because large deposits like that all have to be documented and there has to be a paper trail.

        Kevin Graham

  95. Son and his wife are buying house. If my son is on a joint savings account as well as money market account can he just access the money from either account for down payment or will it need to be gifted. His name has been on the account for several years

    1. Hi Christine:

      If his name is on the account, he should be able to access the money and use it for a down payment without you having to write a gift letter.

      Kevin Graham

  96. Hi, my boyfriend needed a $1000 deposit for purchasing the house. I let him borrow $1000, so he could sign the papers in one day. He couldn’t go to the bank because he was currently working and by the time he got off work, the bank would’ve been closed. So the check was written for the title company and my name was in that check. He did write me a check the next day to pay me back. Now do I still have to write a gift letter since technically it wasn’t a gift? Do I need a printout of my bank statements showing the amount of money I withdrew and the amount of check he gave me? We need these information for him to be able to finish the requirements for his loan. Thank you.

    1. Hi Susan:

      Since it wasn’t a gift, no letter is necessary. In terms of what documentation of these transactions might be necessary in order to complete the loan, I would follow the advice of your lender. Hope this helps!

      Kevin Graham

  97. My son is divorcing, but would like to keep the house which is on both their names. In order to get a new mortgage on his name he needs about 80,000 to
    take care of the old loan, pay his wife her share and have enough to cover all of the expenses of the new mortgage.
    We as his parents are willing to help him by giving him that money, but because of the limits on gift giving ant tax issues we were wondering if we can just add
    his name on our joint M.M. bank account so he can windrow that money as his own when he needs it. Thanks.

    1. Hi Gloria:

      Depending on the time frame, that could cause a problem. The funds would have to be in his name for a certain amount of time before he could use them in a refinance transaction. With certain types of loans, you might be able to help by cosigning on the mortgage. It’s very hard to give the right answer without knowing more about his personal situation to determine what options might be available.

      I’m going to suggest he call 800-251-9080 and we can go from there. Alternatively, he can fill out this form and we can put him in touch with a mortgage banker that can go over his options. Have a great night!

      Kevin Graham

  98. Our in laws helped us pay off our car in order for us to qualify for a mortgage. Will we need a gift letter to explain the funds used to pay the car off, or only for funds we are using as a downpayment?

    1. Hi Jen:

      If the funds are being used to pay off debt, the lender still needs to see a letter. Hope this helps!

      Kevin Graham

  99. So, my girlfriend and I live together and found a home we love. I initially wanted to go with a VA loan but due to erroneous reports on my credit (late payments in the past year) i would not qualify until September. I was pre-approved for an FHA loan for the amount needed but there will be a lot of expenses as soon as we move in. The plan is to buy the home, pay the 3.5% that is about $6k and refinance in 6 months with a VA loan to avoid the PMI as i am a disabled vet. If we live together and the home being purchased will be both of our primary residence, can she gift me half of it if she writes a letter and all those requirements?
    I just want to make sure we wont be blindsided.
    We live in Ohio and I am using quicken loans for the financing.

    1. Hi James:

      You may have some options as far as refinancing and we can talk about the gift fund issue, but I’m going to have someone reach out about this and go over your situation.
      Kevin Graham

  100. My brother is planning on buying a house. His friend has the down payment but the gift cannot come from a friend. He wants the friend to deposit the money in my account and then I gift it to my brother. Are there any gift taxes or rules regarding this? THis is in the State of Hawaii

    1. You may run into rules regarding how long the money has to be in your account. I’m going to have someone reach out to you about this.

      Kevin Graham

  101. My parents were planning on gifting me 5K towards the down payment on my house. I recently found out they were planning on taking it off one of their credit cards. Would they be able to do that

    1. I need a little more info about the situation, Sarah. I’m going to have a home loan expert email you to get some more details. Thanks for your question.

  102. Hi, I am receiving gift funds from my boyfriend. Now when filling out the gift letter, would they accept if i put “boyfriend” down as the donor.

    1. Hi Alicia:

      This gets just a little complicated, but essentially if your boyfriend intends to occupy the house with you, then he would be considered your domestic partner and could give you the gift funds. He can also give you the gift funds if you’re engaged. Finally, on FHA loans, you can get gift funds from a close friend with a clearly defined interest in you. I think a boyfriend would qualify in that case. Hope this helps!

      Kevin Graham

  103. I have an FHA loan and I have to put up $2,000.00 for earnest money. My ex husband is giving me the money, in which he owes me. Will I need him to provide me with a “gift” letter?

    1. Hi Marie:

      You may need him to provide a gift letter. I’m going to have someone reach out to you about this.

      Kevin Graham

  104. Well after reading this I realize now what a HUGE mistake I made when listening to our agent when me and my now soon-to-be-ex bought a home together in 2007. We were not married at the time. I was selling my home, that I had paid cash for, and then transferring the $$ upon the sale of my home to the purchase of the new home but as separate property and my ownership (55%).
    We were advised that I had to fill out a “Req for verification : Gift letter” so he could get a mortgage loan for his portion (45%). That was 2007, we got married in 2009. He started cheating about five minutes later and never stopped, but that’s another issue. Now we are divorcing, we already sold the house, I got my orig investment back and had it wired from one title co to the other that was handling the purchase of my new, husband free home. We had agreed all along that it would go this way. Well, we’re still married but now down to dividing up his pension and 401k, but NOW, he’s trying to say that he has a 50% community property claim in my home that me and my son (not his) live in now because ihe now claims it was purchased with community property, aka, that same separate property $$ that I had before the marriage that I put down on our house, BUT, made the mistake of filling out that form so he could get a mortgage. I WAS NOT ever a gift, ever ever NEVER! Basically what he’s trying to do is prevent me from getting any of his retirement $$ by making it a “wash”. But my BIGGEST mistake was marrying an opportunist, a man with low moral character. Anybody know a way around this “gift letter” thing? It’s not a big deal if I walk away with nothing, it’s more about the principle of “being held accountable”, like he ALWAYS told my son.

    1. Hi Misinformed:

      I’m not sure if the gift letter would make any difference. Community property laws are usually strictly based around what state you’re in and whether the property was purchased during the time we were together. That said, I’m going to have someone reach out who may be able to look further into this and see if there’s any advice we can give.

      Kevin Graham

  105. Hello, I have a pre-approval letter for a FHA loan. My aunt is giving me $5k as a contribution to my down payment. She is able to give me a gift letter if necessary. If my bank wants to confirm her funds (ex. her bank statement), are they going to ask for it on my closing date or how soon could that be?


    1. Hi Fernanda:

      I’m assuming when they’ll ask you for that documentation is dependent on the policies of the lender, but I’m going to get you in touch with someone who may be able to give more information.

      Kevin Graham

  106. Hello, my uncle is going to give us a gift For the 5% of the money due at purchase and sales. (We are going to put down 25% in total after we close on the house we are selling.).

    Is it okay with the underwriters if my uncle wires the funds into my account because a check won’t clear in the time we need the funds. Obviously we’d have gift letter, etc.

    Thank you!

    1. Hi Simone:

      The requirements for money to stay in your account for a certain amount of time depend on the loan you’re getting. I’m going to have someone reach out to look into this with you.

      Kevin Graham

    1. Hi HM:

      Your qualifying income is based on your gross income every month, so that’s what we’re talking about. Hope this helps!

      Kevin Graham

  107. My mom is selling her house and moving in with me and my family. She is gonna put the down payment on new house for us. Total down of $150,000. Are my husband and I going to be super taxed on this of she is not on the title? What’s the best way to do this without being taxed?

    1. Hi Jennifer:

      Since this is a tax question, my advice to you is to find a financial or tax adviser. We don’t like giving tax advice because the tax code can vary so much from state to state.

      Kevin Graham

  108. 2500$ of our down payment is hard cash. The lender said we can have our parents gift it to us and they will check their bank account to make sure they are capable of such gift. So here is my question. I know my parents do not have that kind of money sitting in their bank account. The lender said to get it in a cashiers check… I’m just getting nervous. Never knew cash would be so hard for someone to take!!

    1. Hi Kayla:

      I can get this to someone who may be able to give you more information on how to accomplish this. It often sounds crazy to clients I’m sure, but lenders can’t take cash for a down payment because investors require that the assets used are verifiable. That said, I’m going to have someone reach out to go over any options you may have.

      Kevin Graham

  109. I got a gift from my father-in-law he filled out the gift donor paper then asked for 30 days of his bank statement and on it apparently he transferred money from one account to another 4 days after giving me the gift so now they want bank statements from the other account for 30 days and he’s refusing so I have to move out of the home I rented for 9 years in 5 days because they’re not going to give me the loan what can I do

    1. Hi Jesse:

      FHA has some fairly specific guidelines. Your only option might be to ask him to show the bank statements, but I’m going to have someone reach out to you about this. They can give you better information than I can.

      Kevin Graham

  110. My husband and I are looking to get gifts from both sets of parents. My parents being in France, do you know what is the maximum gift amount they can give before being taxable and also once going over that limit, what is the tax rate? What about for money coming from the US

    In addition, does the money from both sets of parents be in our account prior to applying for a loan? and if so for how long? we are applying for either a 30 or 15 year fixed mortgage.

    Thanks in advance,


    1. Hi Amelie:

      With the money coming from France, this gets complicated and I would recommend talking to a financial adviser to get the answer to the tax portion of your question. With regard to how long the money has to be in your account, that depends on the type of loan you’re getting (FHA, VA, conventional, etc.) I’m going to have one of our Home Loan Experts reach out to go over this with you.

      Kevin Graham

  111. To get pre approved for a mortgage loan, I submitted a gift letter from my wife’s aunt (along with her statements as proof). Now that we are getting closer to closing, it doesn’t seem as though my wife’s aunt will be able to deposit the gift to my account. My wife has then decided to gift me the money, since I am the only one on the loan. Will this be ok, since my wife isn’t the “original gifter”? And will it be ok to transfer the gift to me a couple of weeks before we close, or is this not enough time? (My wife has two months of statements as proof).

    1. Hi Lou:

      I’m going to have someone reach out to you about this, but it depends on the type of loan you’re applying for in terms of how long the money has to be in your account. Your wife can gift you the money.

      Kevin Graham

  112. My MiL has told my husband and I she will gift us $20-30k towards a down payment. Should we accept this now and place in a seperate savings account or wait till we are ready to buy to have her give that to us? I foresee that could be anywhere in the next 3-9 months.

    1. Hi Alltsov:

      Depending on the type of loan you get, there are requirements that the funds sit in your account for a certain amount of time. I’m going to have someone reach out to help go over this with you.

      Kevin Graham

  113. Is it possible to receive a gift ($50k) from my domestic partner’s parent? I will be the one applying for the mortgage, not my partner. Or must it be gifted from my partner’s parent to him, and then from him to me? It seems like this would cause both he and his dad to pay taxes on the gifted amount. Thanks

    1. Hi Kate:

      I’m not sure how this works technically because you’re not married, so they may or may not be considered your in-laws. I’m going to get this to someone who can give you more definitive advice. They’ll be reaching out.

      Kevin Graham

    1. Hi Jerry:

      I’m not sure if there’s a difference if the money is coming from overseas so I’m going to pass this on to a Home Loan Expert that can look into your situation. Thanks for reaching out!

      Kevin Graham

  114. If another person desires to give a person a gift to help them I don.t think they should be penalized by saying they have to give you all their personal financial information and if they don not do as you all wish you deny the person the loan. come on how real is that.

    1. Hi Ruby:

      I understand your concerns. Unfortunately, the investors that buy mortgage loans have fairly strict underwriting standards in order to make sure that the loans are going to be sound investments. While it can be a lot of information to give up, any mortgage company will treat your information with the strictest confidence and the highest security.

      Kevin Graham

  115. It says on the website that you can put 25% of your monthly income in your account without it being considered a gift for single deposit’s. Is that per month or can I make many single deposits under the 25% without it being an issue. This would be for FHA as well. Also for the monthly income would it be gross income or net income. Thank you.

    1. Hi Greg:

      I’m not exactly sure what you mean by 25%. If you’re putting your income in your account, it’s not a gift anyway. I’m going to have one of our Home Loan Experts reach out and help you look into your situation.

      Kevin Graham

  116. Hi,

    On a conventional loan for ~70k in OH –

    Mortgage would be in my name only. My boyfriend’s brother wants to gift us $5k, and I have have $5k to use for a downpayment. Does the money need to sit 60 days in my account or if my boyfriend’s brother shows 2 months of history can we use it immediately? Could my boyfriend’s brother gift it to my mom instead so I could use it immediately otherwise? What would be the best/quickest way to get access to it for a downpayment?


    1. Hi Leigh:

      You can’t get gift funds from your boyfriend’s brother. You can get them from your mother. I’m going to have some reach out to you about this though.

  117. My best friend and her husband gifted me $5000 last month. I was prepared (emotionally) to start to loan process. Then the mortage loan office told me that for a FHA loan I could not use my best friends money (even with a gift letter), that it had to be a relative. I’m confused about the rules. Also, what do I do with the money now that I can’t use it.. They have stated they are giving it to me and do not want it back. Should I open another account an out it there since I can’t use it for my loan? What are my other options for loans?

    1. Hi Gloria:

      You can potentially use the money from your friend to get an FHA loan, but I’m going to send this to someone to help go over your situation and what could be done. They’ll be in contact.

      Kevin Graham

    1. Hi Doe Doe:

      There are some fairly strict requirements for the sourcing of down payments and chances are you won’t be able to get it from a loan and have the mortgage approved. Hope this helps!

      Kevin Graham

  118. My Husband and I are approved for an FHA loan. We got our down payment money from my mother in law. I didnt know this at the time but she took out a loan so she could give us the money. Is this going to cause problems when closing?

    1. Hi Kayla:

      That in itself won’t cause a problem. She just has to be able to document the source of the funds.

      Kevin Graham

  119. My husband would like to gift equity to his daughter and her boyfriend who is currently living in his home. He has not paid off his mortgage on the house. Is this a concern? Also, if the house is appraised at $150,000, but he is going to sell it to them for $120,000, $24,000 would be the down payment at 20%. What happens to the other $6,000 in equity?

    Another related question. If you buy a house for $120,000 but it is appraised at $150,000, does the home really have equity if you have not made any mortgage payments yet? Thank you.

    1. Hi Arwin:

      I’m going to have someone reach out to you about this and give you a definitive answer to your questions.

      Kevin Graham

    1. Hi Megan:

      Congratulations on your engagement! As to whether you need to be married to gift money, you can gift money as a fiancé. I’m going to have someone reach out to go over the details with you.

      Kevin Graham

  120. I live with my GF and we are currently renting. Recently I was approved for an FHA loan just under my name. My girlfriend will be paying half of the closing costs. Would these funds be considered a gift? We also have a joint account which we pay mutual bills from. Can her half of the closing costs just be deposited into the joint account? Would that still be considered a gift? thanks

    1. Hi Marvin:

      These funds would probably be considered a gift, but I’m going to forward your comment to one of our Home Loan Experts to see if depositing it in a joint account causes any problems. They’ll be able to give you better advice than I will.

      Kevin Graham

  121. I am qualified for an FHA Loan. My gift money is coming from my mother who just recieved a large bonus from her job. My mother just deposited the company’s check made out to her in her bank account. Will it be OK to use a gift letter from her and her bank account statement if she just deposited it from her job?

    1. Hi Bianca:

      You can do that. She just needs to show a copy of the canceled check and that the funds have been in her account for 30 days.

      Kevin Graham

      1. Can I use sale of car for down payment? I’m approved for FHA loan. If so is there time limit to his long I have the funds?

        1. Hi April:

          You can use this money for a down payment. There is no time limit, but there may be a minimum amount of time that the funds have to be in your account. I’m going to have someone reach out to talk to you about this.

          Kevin Graham

  122. I have been pre-approved for a FHA loan. I am waiting on my tax refund to be deposited in my bank account for my down payment. How much time do I have to show proof I have the down payment in my bank account? Also, can I show proof of money I have in a CD as proof I have the down payment.

    1. Hi Sam:

      I’ll take the second question first. The CD is an eligible source of funding. As for how long you have to wait and what you have to show, I’m going to you at your question to a Home Loan Expert.

      Kevin Graham

  123. Wife inherited $. MIL wishes to buy house. 1. Don’t want wife on deed will inherit house, pay mortgage or walk away. Can wife give 50k to MIL tax free or is it limited to 14k in 2016? 2. MIL gets VA loan 100% so can wife loan 50k with silly terms w/o gift tax?

    1. Hi John:

      You can give $50,000 to your mother-in-law. Whether it will be tax-free or not is a question for the IRS. If you loan the money to your mother-in-law, it’s no longer considered a gift and cannot be used toward the down payment in that way. You might be able to accomplish the same goal with a gift of equity where you lower the sales price and the difference between your price and the market value goes toward the down payment. I’m going to have a Home Loan Expert reach out to you with more information.

      Kevin Graham

  124. My wife has an FHA mortgage under her name only. I want to gift her the money for a down payment, can it be from a personal loan that I alone would take out?

    1. Hi Art:

      You can definitely do that. You just have to be aware that with an FHA mortgage, you have to be able to document the source of the gift funds. Save your loan documents.

      Kevin Graham

  125. Is the rule about the gift giver having to show bank records an FHA rule or does it depend on where you get your mortgage? I can’t find anything about it at all on FHA’s website, only about the gift letter.

  126. Are there any special considerations that need to be taken into account for gifts being sent from an account from a different country?

    1. Hey Darias:

      That’s a great question that I’m not sure of the answer to. I’m going to get your question to a Home Loan Expert who will be able to give you better information.

      Kevin Graham

  127. I have provided a gift to my brother from my checking account XYZ-001. the check cleared and I provided a screen shot of the cleared balaace, to my brothers broker. She then asked for a back statement showing my address and all transactions for that -001 account. I provided that as well (even though I wanted to black out my transaction details (not the values or the name of the transaction, just reference numbers/last 4 of credit card etc),The broker said I can’t black out anything.
    -001 account is my primary account and I have a secondary checking account which I use for many purchases on a daily basis. Now, the broker wants all the detail of that secondary accound and I refuse to provide it as it has nothing to do with my gift and the account that it was written against. The broker said this will prevent my brother from getting his FHA mortgage. This seems a bit over the top. Please advise. Thanks.

    1. Hi Susan,

      Guidelines for the FHA do require that the broker or lender documents the transfer with a bank statement. However, I’m not sure about whether she needs it for the secondary account. I’m going to get your question to a Home Loan Expert who can give you a more definitive answer.

      Kevin Graham

    2. I’m in the same predicament I was gifted a down payment on Friday February 26 and this Friday March 4th the underwriters indicated FHA guidelines if not acceptable but yet I have provided all of the source documentation from the donor showing the account has the funds in it and it was transferred to my account is this legal under the Fair Housing Authority act they verified the money was in the account printed off the statement submitted to underwriting and then a week later they said oh no we can’t use that

      1. Hi Darrin:

        I’m going to have one of our Home Loan Experts reach out and give you a definitive answer, but I believe part of the problem here is that the funds need to be in your account for 30 days per FHA guidelines.

        Kevin Graham

  128. We are trying to buy a house but the $10,000 down payment was through a settlement we got 2 years ago we never put it in the bank. If we put it in now and wait a month will the settlement paper be good enough if they question where the down payment came from?

    1. Hi Dawn:

      The settlement documents should take care of any necessary documentation requirements. Sometimes the money has to be in your account for a certain amount of time before you can use it toward the down payment. I’m going to have a Home Loan Expert reach out to give you more information.

      Kevin Graham

  129. When my dad died he left me 9000 in cash I never put in the bank. I have been pre-approved for an FHA loan by 2 different lenders both only requiring 2 months bank statements. If I deposit the money in my account now. And wait 2 months can I use the money without questions?

    1. Hi Dell:

      Sorry about your dad. You could deposit the $9,000 and wait two months. The banks might want to verify large deposits though.

      Kevin Graham

    2. Sorry to hear about your father. If the deposit is present on the last two months bank statements than it must be sourced. If you wait two months and the deposit is not reflected in the bank statments than no you do not need to source the funds

  130. Hello,
    My fiance and I just put an offer in on a house and are waiting to here back from the seller currently. My boyfriend unfortunately has terrible credit and is unable to be put on the mortgage so it will just be under my name. Here is my question… he has a very generous family and they are gifting us 40,000 for a down payment on the home. Since they are not technically my family yet how would you recommend going about the gifting process? It is a conventional loan.

    1. Melissa:

      I’m not sure at what point they can be considered your in-laws for purposes of this. I’m going to pass you to one of our Home Loan Experts to see if the gift could be used before you’re married. You could always go to the courthouse and still do the ceremony and reception later, I suppose. That might be another option. Anyway, we can get you the answer your question. Congratulations on this exciting time!

      Kevin Graham

  131. I have a quick question. My parents want to gift my wife and me money for our down payment. The problem is they have the money in cash. Can they gift over cash to us for our downpayment? We are trying to do an FHA loan and the amount is $25,000 in cash.

    Thank you,


    1. Hi Andrew:

      Unfortunately, in order for the gift to work, they have to pay by check and the money has to be in your account for 30 days. I wish I could give you better news.

      Kevin Graham

  132. I loaned my father $2000 a few months ago and he will be paying me back this week. My husband and I are in the process of buying a home and need to submit our bank statements. Is a gift letter still needed even though technically it is repayment? We have enough for our down payment (and about $4000 extra after bills) but are afraid the underwriters would want to see even more. Should we just leave the money out of our account until after we submit our statements?

    1. Hey Shae:

      That’s a good question. My gut says it’s not a gift if it’s a repayment, but I’m going to forward your question to one of our Home Loan Experts to give you a more definitive answer.


  133. My auntie gave me $15,000 gift for buying a house . So if I let my mortgage know that is a gift from my auntie. Do I have to pay tax ?

    1. Hey Helen:

      The question of whether you have to pay taxes on it is better left to a tax adviser. That’s what I recommend.

      Kevin Graham

  134. My fiancé is getting pre approved right now by himself but I want to be able to gift him a portion of the down payment when we make an offer. We are doing a conventional loan but I’m wondering if lenders allow me to gift if we aren’t technically “family” yet?

  135. We recently signed an agreement to purchase a home. We are using FHA financing, my question is about the money for down payment/closing. We are wanting to use my check deposits from my job for this next 6 weeks as our down payment money. Are there any rules against using earnings deposits and down payment money, even the deposits right up until closing? Of course my whole checks won’t need to go to down deposit but probably about 1/2 of it. The other half will go need to go for my regular bills.

    1. Hi Jessica:

      I’m not sure about the answer to that question, but I’m going to get it to someone who does.

      Kevin Graham

  136. I have a very generous friend who is gifting me money for my down payment on my home. I was told by my mortgage broker that a gift for mortgage down payment has to come from a family member. Is that true? I really don’t get why it would matter if it was a gift and there is a gift letter stating what it’s for.

    1. Hi Kim:

      It’s possible to get a mortgage with gift money for the down payment from a close friend only if you get a loan through the FHA. If it’s a conventional loan or through the VA or jumbo, you do have to get the money from a family member. They have different requirements in terms of the mortgages they’ll allow. I wish I could give you better news, but hopefully this clears things up.

      Kevin Graham

  137. If I don’t have a home I’m buying until further into the future, does the gift letter have to have the address of the property being purchased? I mean, because it doesn’t exist yet. Can the letter just state that the deposit is to be used for a down payment on a house? Also, can it be deposited into my bank account with the rest of my own money? Because I recently read an article that said it could not be mingled with other monies. Please help! I have so many questions and no idea with whom to speak with. I’m afraid to go to a loan officer and ask questions because all the information about down payments and such have me scared that I will screw up and not be able to buy my first home.

    1. Hey Arian:

      Never be afraid to ask questions. To answer your first question, the address of the property being purchased may or may not be necessary depending on what type of loan you’re getting. I’m going to pass your information along to a home loan expert so we can get into more specifics and answer any and all questions you may have. You won’t screw up. You’ll be just fine and we’re going to help you get into that home.

      Kevin Graham

  138. I gave my now ex-fiance $2,000 as a gift for a down payment on our condo. The plan was to put my name on the title, however, that never happened. At this point, I’m still living in the condo while he isn’t allowed back until at least the 7th of January due to a domestic violence situation. I technically have no right to this property, so I’m basically waiting for him evict me. My question is on whether or not that gift money gives me any ownership rights to the condo?

    1. Hi Gosia:

      Unfortunately, the answer to that question is no. A gift is a gift in this case. I wish I could give you better news, but I wish you the best of luck moving forward.

      Kevin Graham

  139. We are in the process of buying a home and are utilizing verified gift money. We just found out the house was sold to the current owners less than six months ago. I was told we can’t use gift money on a house that was sold within 6 months. Is this the case and is there any way around it?

    1. Hi Alex:

      I’m going to have someone reach out tomorrow and look into your situation. Have a great night!

      Kevin Graham

  140. My boyfriend is in the process of buying a house and his uncle is gifting him his down payment. His lender is telling him that his uncle has to have it in his bank account for 30 days or more. His uncle has kept this money in a safe for years, and his closing date is in a two weeks. Is there anything that can be done about this?

    1. Hi Felicia:

      The 30-day requirement is pretty standard. There may be nothing you can do except push back the closing. I wish I could give you better news, but hopefully this helps clarify things.

      Kevin Graham

  141. I have gifted my daughter $1200.00 towards her closing cost of a home estimated at 178,000.00. I have read many of the Federal policies and regulations i.e. FHA 4155.1 5.B.b, and the “new” FHA/HUD 4000.1, in one it says that the gift only be in a letter, with deposit slips (or equivalent), the other states “Bank Statements” showing the money in the account and leaving (the short of it). Also by reading those mentioned regulations, all state greater than 6% of property value. My gift is less than, do I still need to provide my bank statements?

    1. Hi Duane:

      Sometimes the policies around these matters get a little confusing and it sounds like you’ve already spent some time trying to figure it out yourself. I’m going to have one of our Home Loan Experts reach out to you today. They should be able to answer your question better than I can.

      Kevin Graham

  142. My mortgage guy said not just anyone can gift you money.
    Can an ex husband gift you the money for a down payment on a fha loan?

    1. Hi Stacey:

      Unfortunately, an ex-husband cannot gift you the money for a down payment. There are some more options in terms of where you can get the funds for a down payment on an FHA loan. Hopefully that helps! Have a good day!

      Kevin Graham

  143. My boyfriend was approved for an FHA loan and was told that we needed our down and closing cost payment to be in the bank account for 90 days before we can “close” the deal or even put in an offer. If we get it gifted, do we still need to wait the 90 day period if we have letters to verify?

    1. Hi Angel:

      I’m going to have a Home Loan Expert reach out to you regarding how long the funds need to be in your account. They should contact you later in the week. Happy Thanksgiving!

      Kevin Graham

  144. My fiancé and I are buying a house. He is using money from his savings to pay the down payment. I have very little money right now. Do I need to also provide bank statements if I am not providing any money towards the house out of my account but am on the loan and preapproval?

    1. Hi Sara,

      If you’re both on the loan, both of you need to provide bank statements. I hope this helps.

      Kevin Graham

  145. Hi,
    Just finished attorney review on a house. Working on my final lending options. My parents are going to give me a gift of $80,000 for my down payment. A couple questions I would love some help with. 1. Can they transfer all funds at once (does this trigger IRS large transaction rules over $10k) 2. with a “gift” letter and proof of bank account transfer, anything else they need to know? 3. any concerns we would have from a tax , as long as under the $5mn lifetime gift, no one pays taxes correct? and there is no deduction for my parents for the gift?

    1. Hi, Kenny! I’m going to pass your question on to a home loan expert. They’ll dive into the specifics with you. Thanks for your question and have a nice week!

  146. Hi,
    About to buy some land with a gift from a parent and then get a mortgage to build a home. I understand that a gift means there’s no obligation to repay but would there be anything preventing us from gifting money to them a few years down the road if we wanted to? I know it would reduce our available lifetime gift amount but would there be any other possible tax or legal implications? Would love to talk with an expert.

  147. I am trying to get a conventional loan and got gifts from cousins..
    Would that be applicable for down payment provided that i get gift letters and bank snapshots ?

    1. Hey, Sam! In some cases, it is possible, but there are some very specific variables that need to be considered first. I’m going to have a home loan expert reach out to you with an email. We’ll figure it out together.

  148. Hi, I have been preapproved to buy a house, we found a house, put an offer in and it was accepted. We have a family member gifting us a downplay mentioned of $3500.00. He gave the lender his bank statement with the account number only blocked out so it still has all other info besides his actual account number. Our lender is saying it’s federal law for it to show the actual bank account number. He is NOT comfortable with giving his account number. Closing is schedule for 30 days from now so is there anything we can do to get the gift and not show his account number?

    1. Hello, JAH. Yes, the proof of these funds needs to be attached to a name and a bank account number. They do this to prevent things like money laundering and such. You have a few options. The first (and the one I recommend) is to convince your family member to show his account number. The mortgage industry is heavily monitored, so he shouldn’t need to worry about the security of his bank account number. You could also try to delay your closing until you save the necessary funds. This is not an ideal option, but it may be a solution you can work with. Good luck to you! Please let us know how it goes.

  149. I am trying to buy a condo, unfortunately,there is 1 person who owns more than 50% of the properties so I can not get a bank loan. I am going through a private investment company, I received about $48k from gifts from relatives, and I have $20k as a down payment. The investment co. is asking for 20% down. I’ve received my gift letters, but the comp. is asking for bank statements, I have 1, another is from my uncle who is in the hospital ICU, I did get a snapshot of his account to prove he had the money. My sister sent photos of the cashiers check and bank passbook, stating she doesn’t get statements. I believe I have given them plenty of proof. Can they still decline me? The house I am buying is a pre foreclosure and is about $75K below market value so I don’t want to lose this one. Can the investment company require us to give copies of these statements per the Patriot Act? I feel very uncomfortable asking them for more info. I can not possibly get any more info from my uncle who may not live much longer. He gave me the money as a pre inheritance.

    1. Good morning, Joyce. I’m going to have a home loan expert send you an email. They’ll be able to look into your situation and get back to. Have a nice weekend.

  150. I have been living with an older gentleman who has paid all of my expenses for the past five years. We have a joint bank account though I have no income other than what he puts in the account for me to spend. I am moving to live with two of my children and the gentleman wants to pay a down-payment for us on a house. I if he or the money in their account for more than 60 days, do we have to have a gift letter? My children will have to get the mortgage as I currently am not employed. What will we need to make this work? Will he need to show bank statements of his own?

  151. I recommend posting the responses to questions on the message board. Its pretty pointless reading the questions from people who are just as clueless as I am. All the responses seem to be going directly to the poster via email; this doesn’t benefit others with the same question.

    1. Thanks for your feedback, John Doe. Most of the time, these comments require us to dig deeper and ask more questions. There are many variables involved with the home-buying process, and we want to be able to give accurate answers. More importantly, many of the questions we ask involve private information. We don’t want to jeopardize that, so we take the conversations off of the public space.

      We’re here to help, though, so if you have any questions, we’d be happy to speak with you.

      Thanks! And have a good week, John.

  152. Hello, I’m looking to buy a foreclosure through short sale next month. the price of the home is $62,000 and i’m paying CASH, I have about 30,000 of my own and need the extra money from my parents. I was told by my accountant that my parents can use their lifetime gift giving me the balance. if this is true how would I receive the money ? does my parents have to give me a check and i deposit it in my bank? then i have my accountant file papers for lifetime gift when i do my taxes? Please let me know how to go about this.. thanks

    1. This is an interesting situation, Ron. I’m going to have a home loan expert do some research on this and send you an email. We’ll get to the bottom of this together!

    1. Good morning, Lori! Some comments require us to ask several questions before giving an accurate answer. The mortgage process is incredibly intricate, so we have to figure out the entire situation before giving advice. Many of these conversations require people to share personal information, so we try to get these conversations off of a public space, so as to not jeopardize their information. In other cases, the questions are very specific, so we reach out to other experts in our field who contact the commenter directly.

      All that being said, we’d love to answer any questions you have. Have a good day!

    1. Good morning, Tray! I’m going to send your question to a home loan expert, and they’ll shoot you an email with the answer. Have a good Tuesday!

  153. Hi

    I want to get a fha loan in November, I have the down payment but It will only leave me with about $1000 left over in my account, will that be a problem being approved? Also someone is going to give me the money for reserves, will that be a problem? Also, all my savings for the down payment are in our business account, does that matter or should I transfer to our personal account? We are self employed


    1. Good morning, Rick! If you’re looking for an FHA loan, Quicken Loans® is going to be the place for you. As for your questions, I’m going to have a home loan expert reach out to you to get some more details. They’ll be able to get you on the right track. Have a nice weekend!

  154. Can we get gift money of 40000$ from friend (not relative), its a gift amount not loan. What is the process that needs to be followed?

    1. Hey, Rashi, I’m going to send your comment to a home loan expert. They’ll reach out to you with an email and get some more details on your situation. Have a good one!

  155. Received money from a trust estate. A “gift letter” wouldn’t exactly fit this situation. And it just so happens that I was the executor of the trust, so any letters or verification would/could only come from myself. Any ideas how underwriting would handle? Or should I just let the money sit for 2 bank statements so I don’t have to explain.

    1. That’s a good question, Shani. I’m going to bring out the big guns and have our home loan experts provide you with an answer. They’ll send you an email to get some more details. Have a good morning!

  156. My mother gave me some money as a gift in May and we still have not closed on the home and it is now august. In June she took the money out of my account because she didn’t want me to use it for anything else except in buying the home. She put the money back in there about 3 weeks ago and my mortgage advisor told me that now I cannot use that money towards my down payment. My mother is ok with providing statements and a letter saying what she did and why. I am going through an FHA loan in Florida. Is my mortgage advisor telling me the right things? Thanks!

    1. Thanks for your comment, Kiara. I’m going to have one of our home loan experts shoot you an email to get some more details. They’ll be able to talk you through your options. Have a happy Monday, Kiara!

  157. Hi, I already save 25k and my brother overseas will give to me 25k vIA bank to bank. Can I use that 50k a down payment?

    1. That’s a good question, Webert. And a lot of it comes down to your specific situation. As mentioned in the article, it can depend on the type of loan, the timing, and other variables. In order to give you the best possible answer, I’m going to have a home loan expert reach out to you. Have a good one!

  158. My dad is giving me $100000 for my down payment and he is going to live with me… Is there any kind of tax I will have to pay on this 100,000? He is not the co-signer of the loan.

    1. Hey, PJ. On tax-related questions, you should speak with a CPA. They’ll be able to point you in the right direction regarding gift taxes.

  159. My fiance’ and I are looking to purchase a home and we’re putting down 20% of what we’re offering. We’re offering 85k so our down payment will be 17k. Keep in mind that this loan is only being qualified in her name, I am not on the loan. She makes 22K a year.

    However, here’s the break down of what we’ll be doing:

    – 10k from her IRA (money will be left over)
    – 1k from our bank account
    – 6k in gift money from myself

    Based on this article, how will the gift money be verified? Will I have to provide MORE than a letter?

    1. Thanks for your question, Joel. To better answer your question, I’m going to have a home loan expert reach out to you through email. They’ll get some more details from you. Have a great weekend!

  160. I would like to sell my sister a house that has equity. Can I gift her the equity so that she can use it as a down payment?

    1. Good morning! I’ve sent your question to our licensed home loan experts, and they’ll be sending you an email. Enjoy the rest of your day!

  161. Hello,

    Can I accept a cash gift from someone as long as they include the gift letter and the donor’s bank statement?

    1. I’ve sent your question to our home loan experts, Kay, and they’ll be getting back to you shortly with an answer. Have a nice day!

  162. I know a lady who has a house in escrow with an FHA loan contingency. She has been given a Gift letter from her significant other for an amount within the FHA assets parameters. Her lender says the gift letter is not enough; that he should have DEPOSITED the cash funds before giving them to her so there would be a paper trail. Where is it written that people must use private corporate banks to verify that their cash transactions were not money laundering? It wasn’t even $3500. Is there no other way to verify that this amount was money he earned in his own doing business. Would an affidavit suffice?

  163. Hi,
    my relative is going to help me with down payment for around $100k. However, he is from overseas. Will it be taxable? Thanks.

    1. Hi Ling! I’ve passed this on to our our home loan experts. They’ll reach out to you shortly to discuss this in more detail.

  164. Hi, I gave my sister gift money to purchase a house. I have provided the bank information about my checking account, but still the bank wants to find out my CD, and other resources. I have transferred my money from CD to checking and then send it to my sisters account. I am not comfortable to provide information about my CD account because I don’t want them to know more information about me like how much I have staff like that. What should I do?

    1. Hi Mariam! That’s something you’ll have to speak with the bank about. If that’s their policy, they’ll know best how to deal with your situation.

  165. My parents were going to give me $20k to help with the down payment of my first house. Would my mom be able to give me $10k and my step dad be able to give me $10k to avoid paying a gift tax?

    Also, my mom was added to my bank account bank in college to transfer tuition payments, and I never took her off. If she added the money that way, since she is on the account, would that avoid a gift tax?

    What if she was a co-signer?

    1. Hi Kelly! I’ve passed your questions on to our team of home loan experts to discuss this in more detail with you.

  166. Hi Sumitha! I’ve passed this on to our team of mortgage experts who will reach out to you to discuss your situation in more detail.

  167. I am receiving a gift from my aunt to aid in the downpayment of a home. My escrow is 8 months long – new construction, so they loan will be approved within the 1st month and then assets are updated 60 days before close. Will the letter and proof of funds be sufficient for the loan approval without actually moving the gift funds into my account, or does the transfer of the funds need to be in my account for the entire 8 month contract signing to close period?

    1. Hi NSor! I’ve sent this on to our home loan experts who will reach out to discuss in more detail.

  168. We have been preapproved for our first home with an FHA loan and are currently under contract on a house. My broker just told me today that we needed reserves which she hadnt mentioned before. Even after seeing bank statements, she said we were good with our down payment. Now we are worried that this deal is going to fall through on our perfect house. She also said we can not receive a gift? Which i thought was allowed with FHA loans. Its all getting confusing and we feel like we’re not getting straight answers. We have more than enough in my wifes business account to make up the difference, but she also said thats not allowed. What can we do?

    1. Hi Jeffery! I’ve sent this to our home loan experts so they can talk with you in more detail about your situation.

  169. My wife and I are purchasing our first home. My parents have offered $10,000 to help with the downpayment, which would bring us to a 10% downpayment. What if my parents start this off as a gift but then decide in the future they want repayment on the $10,000 should they need the money?

    1. Hi Rashidat! Due to underwriting requirements, you probably wouldn’t be able to use those funds.

  170. Hi I’m currently going through an FHA loan and have been pre approved a family member is gifting me money but she is an immediate family meaning she is my moms cousin which I call her aunt. Is there proof that I have to show that she is family ? Or how do they check this ?

    1. Hi Leslie! If you are getting an FHA loan and using gift money as a downpayment, the gift give would have to write a gift letter and provide a bank statement.

  171. My husband has been approved for a mortgage. I am not on it because i am an i dependent contracter and our mortgage consultant advised us that it was easier this way. Part of our down payment is from when i cashed out my 401 about 6 months ago when i quit my previous job. Its been in bank for 6 months. Do i need to do a gift letter to my husband? Also, my mother took out $2,500 from her line of credit to give him. Our mortgage company says we cannot use tgat because its still borrowed money. Can i open a seperate savings account, deposit it, and gift him it? What are my options?

  172. My dad was going to give me money towards closing costs for a house I put an offer on and they accepted. However, the bank is requiring that he give his account number and provide 2 months statements and he is not comfortable with doing that. Is there any way around it? The account he would use has my name on the account also.

    1. Hi Julie! I’ve passed your comment on to our home loan experts who will reach out and see if they can shed some more light on your situation.

  173. I am trying to gift a friend money for a QL home loan. I have been asked to give all my bank info, I have been asked to give copies of checks I have deposited. My parents and I are given the buyer this money – whom is a long time family friend. My parents gave me some of the money – which I put in my account to make one bank wire to the buyer. they now want proof that the check from my parents haven’t been returned NSF. I don’t understand why I have now sent them 2 signed letters stating that this is a gift, that they are still waiting such personal info. My parents get their money from retirement, social security – are they going to as the Social Security department for copies of their bank statements?
    How much of this can go on – and will this keep him from getting his loan when everything else they have asked for and has been given?
    everything I read about gift donors is that it doesn’t matter where they get the money from as long as it’s not going to be repaid by the buyer.
    Please help us understand

    1. Hi Teresa! I’ve passed your comment on to our home loan experts. They will reach out soon to discuss the situation.

  174. Hi Miranda,

    My girlfriend and I live in Maryland and are were pre-approved for an FHA loan and had a contract accepted on a house. We had to take my girlfriend off the loan in order to obtain enough of a loan for the house. Her father was planning on gifting us $15,000 for the down payment and he was going to transfer it to my account. After talking with my mortgage guy he is telling me that since there are no direct relationship between her father and I that we are not allowed to do this/accept it as a gift. He is checking with some other underwriters to confirm but I wanted to do my own research on this issue to see if he is correct. We close in early July so they will need to see my bank statements and have a copy of the letter. Again this is my girlfriends dad trying to gift me money for the down payment for the home his daughter and I will share. Can you confirm this is not allowed and if not a way we can get around this? At this point putting her back on the loan will not work with her debt to income ratio.

    Thanks in advance for any help!!

    1. Hi Kevin! I’m passing this on to our home loan experts who can give you a more detailed answer. They’ll be reaching out soon.

  175. Ive been pre approved for a 100k loan with my annual income but its not enough, so my mom as a gift has been giving me monthly 2000 dllrs that ive deposited in savings account to get a better loan, the problem is that we dont know how to make it accountable to the lender and our broker has no idea of how to do it, we made a notarized letter from her but the broker said it wouldnt work we desperately need help with this gift we need at least 160k to get a house around here

    1. Hi Nick! Typically assets need to be recorded in your bank account for two months. We suggest double checking with your lender to see if they have any more specific criteria.

  176. My fiance and i decided to apply for a loan to buy a home. We were pre approved, found a house, went under contract, now when our application is in under writing we’re being told the money we have saved is not enough even tho with both our pay checks by closing we will have more than enough for closing fees and the seller agreed to pay majority. Why is that and are we totally screwed?

    1. Hi Valva! We’re sorry for to hear about the inconveniences. We recommend talking to your lender to see exactly what is going on with your loan.

  177. my daughter gifted me the 3.5% total amount of $4700.00. It was cash and I deposited the funds during the pre approval process. I was unaware of the “paper trail” no one ever told us this. She was saving the cash as she actually owed me 5K I loaned her for her wedding 2 yrs earlier. Will my loan be denied now because of this??

    1. Hi Sue! There are some requirements as far as how long it needs to be in your account if it’s being used for the downpayment. Our mortgage experts will reach out to you to discuss you situation specifically.

  178. I’m looking to use gift money from my girlfriend’s father to purchase a home. Does it present an issue that this gift will not be coming from a family member? Would this be different if we were engaged?

    1. Hi Chris! There are specific rules and guidelines for gift money. I’ve passed your question on to our team of mortgage experts who can advise you a little further.

  179. I’m receiving 300k from my non citizen parents for down payment. Will I need to pay tax for this gift? I live in MA. Thanks.

  180. I was in a accident a few moths back a got a settlement I have $4,000 left for my down payment and need to bank that will this cause any problems or red flags trying to close by the end of April.

    1. Hi Rodney! You’ll need to have 2 months of bank statements to show that any money you’d be using at closing has been in your account.

  181. Hi, I got into a situation where my 40% of downpayment got trading lock in stocks. The lock will be opened one day before the end closing date. Suggest me a way to proceed further on this case

    1. Hi Justin! Any money used at closing needs to be recorded in your account for 60 days. I’ve passed your comment on to our team of home loan experts who can look into your situation and advise further.

  182. Okay, so my fiance is buying a house but their only using him on the mortgage application, we are splitting the down payment and I’ve done sent him a check of half of the down payment. He hasn’t deposited yet into his checking, should he deposit it in there or the escrow account that our realtor has set up? Our closing date is end of April.

    1. Hi Karalina! Typically money that is used to purchase the home must have two months worth of bank statements to show available funds. However, I’m sharing your question with our home loan experts who will reach out with more specifics.

  183. We’re currently in the underwriting stage of our loan and I had to sell my truck as part of the deal because the payment was too high. What kind of proof would I need that its sold because the lein release wont come in the mail for over a month which will be past my closing date

    1. Hi Frank! The underwriter will usually condition for documentation to show the lien has been paid off, such as something from the current lien holder showing it is paid and also may order a credit supplement to verify.

  184. Hi,
    I am in the process of purchasing a second home. My dad gave me a cash gift towards my down payment. However, I still need to show that I have some money of my own. Can I sell some music equipment I have a free up some cash to put in my account.

    1. Hi Mona! As long as the funds you intend to use have been in your account for at least 60 days you should be able to use them towards the purchase.

  185. Hello,
    My wife and I are looking to buy a house in 2015 in the month of June or July. We live in western NC and want to put 20% down. We are looking at a house in the 200,00 range and have 10% of that down payment saved up. A family member has offered to gift us $20,000 for the rest.

    Will I run into any issue depositing this into my account? Also will this have any Tax Implications?

    Thank you for your help.

    1. Hi Andrew! I’ve passed your comment on to our team of mortgage experts who will reach out soon to discuss.

  186. My husband and I make 140k/year. Our debts are 1k/month. We saved $5000 and we received a gift of $20k from a relative. Our credit scores are in the 700’s. What types of mortgages can we qualify for? Do we need a larger downpayment? Do we need to save more of “our own” money? Are we going to be taxed on the gift? Will the relative who have is the money get a tax break? We are looking to purchase a 4 bedroom home in Connecticut. Thanks!

    1. Hi Luz! Thanks for reaching out! I’ve passed your comment on to our mortgage experts who will be reaching out shortly to discuss your options.

  187. Hi. I am working on buying a home through rent to own. I plan on putting down $34k for the down payment, plus I will receive rent credits of $300/month, which will go toward the down payment. My mother is going to gift me $28K for the down payment ($14K this year, and $14K next year), and the other $6k I will get from savings. I plan on renting for one year, and then applying for a mortgage–by that time, I am hoping that I will have been able to save even more money for the down payment. Will I need a gift letter for the two gifts of $14K, since I won’t be applying for the loan for at least a year? Thank you.

    1. Hi MelBel! Typically, any funds that you plan on using would have to be in your account for at least 60 days. I’m passing your question along to one of our home loan experts who will give you more specifics regarding your situation.

  188. Hello
    I am a priest .I live in Ontario Canada and a close group of community members would like to gift me enough money to put a down payment on a house . I do not make alot of money but two people who make a good amount have come forward and would like to be co applicants on the mortgage and help me pay it off . What is the best way to go about this ? How can the group of people gift me that much money? they are looking to give me 100k .will we have to pay tax on the money? And how can I go about this so they will not have to show their bank statements because they are not comfortable showing them ?
    Thank you

    1. Hi Leena! We actually don’t do mortgages in Canada so we can not give you accurate information on your situation. I’d suggest reaching out to a local lender.

  189. I tool 401k loan. I transferred this money to mu husband as a gift through online. will that be considered for downpayment with in a week? and also i have given gift letter too.

  190. I have a side business that I transfer to our bank account from our Paypal account on an irregular basis. It does not meet the 50% mark of the monthly transfer rule. However. I do not keep a consistent balance in this account. I also do not feel comfortable naming every person I’ve had business with. What are the limitations and specific details needed to list in the 60 day statements?

  191. What happens to the money one gifts you for a downpayment? I know it needs to be in your acct, but once the bank sees you have the gifted amount of money for a downpayment, does the money stay in your acct or does the bank take or withdrawl it??

    1. Hi Marcy! Your mortgage company will need to see that you have reserves in your account, so the amount you need for closing, plus enough to cover other debts/bills in a fiscally responsible way. It’s likely you’ll use your gift money at closing.

  192. I am in the process of trying for a FHA loan, but when I filed my taxes, I have a side business which withstood a loss. Would that affect my chances of getting approved?

    1. Hi Carolyn! I’ll pass this on to our mortgage experts who will reach out to discuss. In the meantime, your home loan expert can let you know what income requirements and schedules you’ll need to show for qualification.

  193. My wife’s brother want to gift some money for our first home we are planning to buy in the next month or two. What are tax implications on this ? We live in Texas and my wife’s brother live’s in North Carolina. Amount he is planning to gift is 25,000 USD.

  194. How would thing work if I had a joint account with my mother? I am authorized to transfer funds from an account in her name to an account in my name freely. Will these transactions be questioned by the underwriter?

  195. Hello.
    I am currently stressing completely out. My fiancé and I were pre approved for an FHA loan and sign on a contract for a home, our offer was accepted. We really were not “home searching” but a friend had a home for sale and things really took off suddenly. I am so concerned about my bank statements. We both make around 4,000 a month and have decent credit with excellent payment history. My concern is that I am finishing school at a university and took out a student loan this term. Currently my loan is not added into my debt ratio. BUT, it will show on my bank statements as a deposit that has been used here and there. How will this affect us? I feel like it’s going to break the deal!
    We have not been saving our money well, eb m though we are more than able to afford a home. We plan on using our tax refund to cover all costs. How does our situation look? I am very scared.

    1. Hi Alicia! Try not to stress. Our mortgage experts will reach out to you soon to better understand your situation and see what your options are.

  196. Hello,
    My parents gifted me $53000.00 towards the down payment of my home loan in ND. Do either of us have to claim on our taxes and if yes are we going to owe the IRS money?
    Thank you,

    1. Hi Sarah! I’ve passed on your comment and someone will reach out soon, but another great resource would be your tax advisor.

  197. I’m an artist who gets a monthly salary from my gallery each month and now and again I get pretty large deposits to settle up sales and such.
    I’m about to get a pretty large check and would like to use part of it as a down payment on a house. I’m told I’m going to have big issues even though it’s income. What can I do to make this easier? I’ve found a great little house and want this to move forward.

  198. I got married about 6 months ago, and saved all of the gifts for a down payment. I’ll be buying a house this year. If the gifts have just been sitting in my savings account for more than 60 days, am I required to provide a gift letter?

  199. I’m planning to buy a house within this year. My aunt is giving me $100K as a gift to put as a down payment. In addition, to the gift letter with her bank statements and along with 60 days of those funds in my bank account, what others documentations or things that we need. Also, do I need to pay tax for that $100k gift for down payment to purchase my house? If so, can you please tell me other ways that i don’t need to pay the tax? I live in California. Thank you for your advise.

    1. Hi Yuliana! I’ve passed your comment on to our mortgage experts who will reach out to you shortly to discuss your situation.

  200. I took money for my 401k for down payment. Check will be here 2 weeks before closing. If I open a savings acct and put it In there will underwriting pick up on that.

  201. Will the recipient of my gift money be taxed on the gift when it is used for a down payment of a home purchase? This is for Washington state.

    1. Thats a great question Marie! I’ve passed it on to one of our mortgage specialists licensed in Washington. They’ll be able to help you out.

  202. So we are trying to buy a house FHA, and we have about 3000.00 of the down payment in the bank and my brother in law was going to gifr 3000.00, but we were told that if he did that he would have to show his bank statements also, and he is not comfortable with that, so how would that work?

  203. I’m extremely up sad with this topic. Doesn’t matter if you choose FHA or Conventional, you must do the gift letter and send statements from the donor. Completely uncomfortable situation. The rules are not clear or standard. Every time that I talk with my mortgage manager is a nightmare. I hope one day this system will change.

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