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Are gifts allowed toward VA closing cost

Trying to get loan through Va and have been offered cash for closing costs by a family member. Is it possible to use this money for closing costs or is that not allowed? by xanenkriss7823172 from Federal Way, Washington. Aug 21st 2014 Reply


Christopher Stancato (Kyle Stancato)
#2 ranked lender in Washington - 62 contributions

You should not have to. If you are using your VA eligibilty you should want it to be a true zero down loan. Hopefully you have a good realtor and/or mortgage person to get this for you. You should also get back your earnest money. Let me know if you have any questions. I am local. Kyle . 253.460.6000

Aug 21st 2014
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Dave Skow (daveskow)
#1 ranked lender in Washington - 234 contributions

A gift for a family memeber is allowed but it needs to be properly documented ......cash is difficult to develop a papertrail on so its best if the gift comes from a realtives bank account or some other path that can be validated and verified with a paper trail for lender to review and approve

Aug 21st 2014
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Dana Anghel (dana@utloanofficer.com)
#88 ranked lender in Utah - 50 contributions

You will need a gift letter, and your loan officer will tell you how to document the paper trail. You cannot just bring cash at closing, so make sure you let your loan officer know ahead of time if you plan on using gift funds - an underwriter will have to sign off on it. Consider shopping for a different lender if the only rate option you have involves paying closing costs. It is normally easy to take the interest rate just a bit higher and cover all the costs (unless your lender is charging too much). Also, consider negotiating seller paid closing costs - that would be a much easier option. Good luck!

Aug 21st 2014
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Yes, gifts can be used towards your closing costs, but you will need to check with your loan originator to confirm this and follow their documentation process. Good Luck!

Aug 21st 2014
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Melissa Stutes (MelissaStutes)
#28 ranked lender in Hawaii - 101 contributions

Yes, only family members are permitted to provide gift funds. Also, it must be documented by Gift Letter, evidence of donor ability, evidence of the transfer of funds and evidence of receipt in the borrowers account. But...yes gift funds are allowed to be used toward closing costs.

Aug 21st 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,683 contributions

Yes.. VA does allow for gifted funds to go towards your purchase.. there is a set process that must be followed to properly document the source of the funds, but it is absolutely allowed.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Aug 21st 2014
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