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Gift money still in other account, will that work?

We are getting a gift from a family friend to help us purchase a home in the amount of $20,000. but it hasn't been put into our account yet. Will this be able to be counted towards our down payment? by toddd940 from Baltimore, Maryland. Nov 12th 2015 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Possibly.. the rules are different depending on the lending program your applying for. as each program has a very specific list of acceptable donors. Also, the latest guidelines vary when it comes to proving the donor actually owns the funds they are going to donate. If the donor has any problem giving you the funds directly, they can deposit the funds to the closing agent (title company) and provide the underwriter with an escrow receipt.. this way, if the deal does not go through, the title company has to refund the donor and not you. But even in that instance, they ( the donor) must still sign a gift letter, and prove they have the funds to gift. 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 NMLS# 226347

Nov 12th 2015
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Larry Gray (lgray_312_247)
#593 ranked lender in California - 1,139 contributions

As William Acres answered, possibly. Under most conforming loan guidelines (fannie mae or Freddie mac) the funds are usually from a family member...parent,grandparent, sibling, Aunt, Uncle, and cousin. If it is a friend you will need to substantiate it is a long time friend...in this case a friend of the family. That is ok,but it needs to be established as a long time close friendship (i.e. at least 10 years.)You will need to complete the gift letter provided you by your mortgage loan officer and the mortgage bank generally will need a recent bank statement from which the money will be coming.

Nov 12th 2015
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Yes for an FHA and FANNIE MAE LOAN.

Nov 13th 2015
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