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Gift for down payment

My mom is going to give 30k for a downpayment on a home. Are there any limitations I need to know about? by jimmichie955 from Cleveland, South Carolina. 26 days ago Reply


Dan Paladin (dpaladin)
#1 ranked lender in California - 658 contributions

No, gift funds are allowed from a qualified family member.

25 days ago
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,904 contributions

Generally, there are no limitations on funds gifted from a family member. HOW the money is gifted is the biggest problem I experience with borrowers. BEFORE the money is gifted, have a detailed conversation with your Lender. Follow the advice they give you for when and how your mom transfers the funds. Lenders require the last two bank statements. Any money already in the account on the first day of the oldest statement is considered the borrower's own funds. As an example, if your statements cycle on the last day of the month, and you deposit the gift into your account on January 31st, then the bank statement for February starts with the higher balance. If you are applying in Late March or later, give the lender the February and March statements and the money is treated as if it is yours. If you don't have that time-line, then Follow the lenders guidance so they can use the gift for your transaction. Whatever you do, DO NOT transfer the gift in cash. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000.

25 days ago
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