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How much of the down payment can be gift? ANd how long does it have to age if any at all.

by jaredandrosepeter... from Los Alamitos, California. Dec 18th 2013 Reply


Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,246 contributions

for a conventional (non-jumbo) or FHA loan the entire amount can be gift funds from an immediate family member (minimum 5% down for conventional, 3.5% for FHA). If jumbo it may need to season for 60 days depending on details of the specific loan and lender requirements.

Dec 18th 2013
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Scott McPherson (ScottMcPherson)
#556 ranked lender in California - 25 contributions

Excellent question. This depends on a few things. 1. Is this for a primary residence, second home, or rental property? Also depends on what the loan amount is. Lastly, depends on if you are buying a 1 unit property or multi unit. If the Loan to value is going to be 80% or less then all of the down payment can be from gift funds. If you are putting down less than 20% down and you are buying a primary residence and the loan amount is less than 417K then all of the down payment can also come from gift. A minimum borrower contribution will be applicable when your loan amount is greater than 417K in CA , or if you are buying a 2nd home, or if you are buying a multi unit property. The min borrower contribution at that point would be 5%. These rules also depend on what lender you are using. Please contact me if you have any further questions or if I can help out. Scott. C2 Financial . smcpherson@c2financialcorp.com

Dec 18th 2013
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Jamie Lynne (nationwidelenderforyou)
#139 ranked lender in Texas - 576 contributions

Also note, the look-back period to establish whether money is or is not yours is only two or three months, which means you can avoid both the gift letter and documentation altogether if you deposit the funds into your own account at least that long before you apply for a mortgage. This strategy doesn't negate the genuine gift requirement. If the money involves any expectation or implication of repayment, it is not a true gift, but a loan; that will have to be disclosed and could affect whether you will qualify for a mortgage. If you have any further mortgage questions, I have been lending in CA since 1989 and I happy to answer your questions, 7 days a week. Jamie Lynne, 800 315 8803, www.bartprequalifies.com, jamie@bartprequalifies.com

Dec 18th 2013
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Larry Gray (lgray_312_247)
#593 ranked lender in California - 1,139 contributions

Jamie added a note which is important to consider. If you can obtain gift moneyand allow it to season in your bank account to show a minimum of two months with the money in the account...you have a little less to deal with in proving it is a gift.For example, you must obtain complete bank statements of the gift givers bank account to prove they had the money seasoned and thus came from them. Otherwise, the completion of a gift letter along with the gift giver's bank statementsgenerally works. If they deposited money for this purpose then it needs to be money trailed as well.

Dec 18th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,317 contributions

In most cases, the entire down payment can be a gift.

Dec 18th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

different programs have different guidelines, but in general, it can all be gifted, but who and where the funds are coming form will have to be verified.. Also, some lenders require more supporting documentation than others, so it's best to ask first.. 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

Dec 19th 2013
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