When a borrower is required to have reserves beyond down payment and closing costs, FHA and conventional loans will allow those funds to be a gift. VA will not allow gift funds to be used as reserves.

Related Article Title: Gift Funds as Reserves Question: Does any program allow gift funds to be used for required reserves? Answers: Both Fannie Mae and Freddie Mac allow gift funds to be used as reserves. VA does not allow gift funds to be used as reserves. FHA will allow gift funds to be used as […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Scroll to Top