Feeds:
Posts
Comments

Posts Tagged ‘finance’

By:Phil Goldberg

Did you know . . . One of the issues that always comes up when working with buyers is how much money the buyer is how much money they plan to use for a down payment.  When working with buyers that say they are getting all or some of their money from a gift, FHA requires a “paper trail.” I want to show you what is needed because this alone could hold up a deal or worse yet, kill a deal.

The gift letter itself must contain the following verbiage:

  • Name, address and telephone number of the donor
  • The dollar amount of the gift
  • The relationship of the donor to the borrower
  • That no repayment is required

There are four ways to verify the transfer of the funds (only one is required ):

  1. If funds are already in a borrower’s account…
    1. Obtain a copy of the withdrawal slip from donor’s account
    2. Obtain a copy of deposit slip and bank statement showing the deposit into borrower’s account.
  2. If funds are provided at the closing table…
    1. Obtain a copy of withdrawal slip from the donor’s account
    2. Or. obtain a bank statement showing the withdrawal from the donars account
  1. Must be paid in the form of a certified check
  2. If funds are going to be “wired” at closing…
    1. Donor to provide documentation of the wire transfer
  3. If donor is borrowing funds…
    1. Donor to document the loan
    2. Funds were borrowed from an acceptable source—bank, credit union, home equity line of credit, etc.
    3. Cash on hand is NOT an acceptable source of gift funds
Advertisements

Read Full Post »