Gift Funds

FHA – Donor Gift Funds – Alternative to Bank Statement: Will FHA accept a statement from the donor’s bank letterhead with the account number, owner of account, and a statement that the balance is greater than “X” which is the amount of the gift? [Gift Funds and Gift of Equity Chart]

Answer: While FHA doesn’t provide detailed instructions on documentation from alternative accounts, the guideline does state: If the gift funds are not verified in the Borrower’s account, obtain the certified check or money order or cashier’s check or wire transfer or other official check evidencing payment to the Borrower or settlement agent, and the donor’s bank [...]

2019-04-19T17:26:36-05:00April 24th, 2019|

FHA Info # 19-09 – FHA Updates to Handbook 4000.1- March 27, 2019 – Effective March 27, 2019. [NEW – 4000.1 Handbook Old Guidance vs. New Guidance Chart]

Written By: Tracey Rumsey, Staff Writer With no notice and a 1030-page transmittal discussing the clarifications in the handbook, FHA blindsided the industry.  Our FHA expert painstakingly went through the entire transmittal to create this article and accompanying chart to help you get to the bottom line and understand what changed.  This is a must [...]

2019-04-09T12:49:40-05:00April 10th, 2019|

VA – Acceptable Source of Gift Funds: Who is allowed to give a VA borrower gift funds? [Gift Funds & Gift of Equity Chart]

Answer: As long as you can satisfy the document requirements listed, the gift funds should be acceptable to the VA underwriter.  VA has always allowed gifts, they just relied on VA underwriters to use basic industry practices to underwrite files. Documentation Requirements: Evidence of the borrower’s deposit, or A copy of the donor’s funds by [...]

2019-03-25T08:53:06-05:00March 25th, 2019|

FHA – Gift Funds from Real Estate Agent: Can a real estate agent who is related to the borrower gift commission towards down payment and closing costs?

Answer: FHA does allow a family member real estate agent involved in the transaction to gift commission to the buyer.  Just be sure that the “family member” fits the definition of a family member by FHA. See the full guideline below. Reference: 4000.1 II.A.4.d.iii.(Q) or II.A.5.c.iii.(Q)  Real Estate Commission from Sale of Subject Property refers to the [...]

2019-02-21T16:20:41-05:00February 25th, 2019|

USDA – Gift Funds – Familial Status: What is considered a family member under USDA for the purpose of receiving gift funds? [NEW CHART – Gift Funds and Gifts of Equity – All Agency Chart]

Answer: USDA and VA do not require donors to have familial ties to borrower like the other agencies.  Anyone that does not have an interest in the sale of the property (seller, builder, real estate agent, etc.) can be an eligible donor. Reference: 3555, Chap 9, Att 9-A Social Media Post: Did you know that [...]

2019-01-25T11:03:06-05:00January 25th, 2019|