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I'm buying a house for $100,000 and my dad is willing to give a $2,000 gift for closing costs. I am a first time buyer. After closing, I could get the money back from taxes and pay my dad back in a few months. Will he get in trouble? by mikeljkg762 from Hartsburg, Missouri. Jan 24th 2018 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,154 contributions

First, if your dad is willing to give you a gift, then he must sign a statement that says the fund are not subject to repayment.. this document is signed by both of you.. so you both could get in trouble if it's discovered... The lending rules are very clear.. you are not allowed to borrow the down payment funds unless it comes from an approved source. Examples are: you own other real estate with a large amount of equity.. you can take out a 2nd mortgage, and then use those funds to buy the new home.. other approved sources are borrowing against a 401K, life insurance policy, or stock's, bond's, CD's.. these would be an acceptable source of funds for down payment.. Also, by disclosing it, you will need written terms of repayment.. the monthly payment will be added to your debt to income ratio.. assuming you are still below the allowable ratios, you will be fine. The short answer is, that if you are really borrowing the funds from your dad, then that's considered loan fraud, and you would be breaking the law. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Jan 25th 2018
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Sara Deere (Saraloveshomeloans)
#1 ranked lender in Kansas - 528 contributions

I agree completely with the previous response to your question. I am able to help people throughout IL, KS, and MO. I am comfortable working with first time home buyers to the senior market. You can find my contact information at www.saradeere.leader1.com.

26 days ago
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