{"id":338,"date":"2014-08-17T23:30:27","date_gmt":"2014-08-17T23:30:27","guid":{"rendered":"http:\/\/mikeclover.com\/blog\/?p=338"},"modified":"2018-05-19T15:20:43","modified_gmt":"2018-05-19T15:20:43","slug":"closing-your-home-loan-with-gift-funds","status":"publish","type":"post","link":"https:\/\/www.mikeclover.com\/blog\/2014\/08\/17\/closing-your-home-loan-with-gift-funds\/","title":{"rendered":"Closing Your Home Loan with Gift Funds"},"content":{"rendered":"<p>Gift funds are the path to home ownership for many today. They may constitute part or all of the down payment, the closing costs, and\/or the financial reserves. In fact, most borrowers purchasing a one to four unit principle residence are allowed to close with <span style=\"text-decoration: underline;\">no<\/span> money of their own.<\/p>\n<p>However, there are restrictions and regulations, so plan ahead and follow procedure.<\/p>\n<p><b>Who may supply the gifts?<\/b><\/p>\n<ul>\n<li>A relative \u2013 anyone related to the borrower by blood, marriage, adoption, or legal guardianship.<\/li>\n<li>A fianc\u00e9, fianc\u00e9e, or domestic partner.<\/li>\n<\/ul>\n<p><b>How must gifts be documented?<\/b><\/p>\n<p><b>The gift letter:<\/b> The donor must write a letter specifying the amount of the gift and stating that no repayment is expected. It must include the donor&#8217;s name, address, telephone number, and relationship to the borrower. If the gift has already been given, it must specify the date when the funds were \/ will be transferred from the donor to the borrower.<\/p>\n<p><b>Donor bank statements:<\/b> The fact that the donor does own the gift funds must be verified via a copy of the donor&#8217;s bank statement. As with the borrower&#8217;s bank statement, the document must be complete, with no white-outs, cross-outs, or notes.<\/p>\n<p><b>If the funds have been transferred:<\/b> Along with the donor&#8217;s bank statement, the borrower must provide a copy of the check or the wire transfer; a copy of the borrower&#8217;s deposit slip; and a copy of his or her updated bank statement showing the date on which the funds were deposited and the new account balance.<\/p>\n<p><b>If funds will be transferred at settlement<\/b>: The donor must have previously provided the gift letter and proof of funds as above. At closing, the gift funds must be presented in the form of a certified or cashier&#8217;s check.<\/p>\n<p><b>When the donor will live with the borrower\u2026<\/b><\/p>\n<p>Funds provided by a fianc\u00e9, fianc\u00e9e, domestic partner, or relative who has lived with the borrower for the past 12 months and <span style=\"text-decoration: underline;\">who will also occupy the home<\/span> being purchased are not considered gift funds. These &#8220;gifts&#8221; can be pooled with the borrower&#8217;s funds and considered as his or her own.<\/p>\n<p>This is an important point to note in cases when some borrower funds are required, according to <a href=\"https:\/\/www.summit-mortgage.com\/\">MN mortgage lenders<\/a>. For instance, borrowers are required to contribute 5% when the loan to value will be greater than 80% on the purchase of a 2 to 4 unit principal residence.<\/p>\n<p>When donor funds need to be regarded as the borrower&#8217;s, the donor must provide a gift letter proclaiming shared residency, plus documentation showing that his or her address is and has been the same as the borrower&#8217;s. This could be in the form of bills, bank statements, or a driver&#8217;s license.<\/p>\n<p>As with all funds, the donor must show proof of ownership via bank statements.<\/p>\n<p><b>Mike Clover<\/b><\/p>\n<p>Mortgage Banker<\/p>\n<p>Homewood Mortgage,LLC<\/p>\n<p>O: 469.621.8484<\/p>\n<p>C: 469.438.5587<\/p>\n<p>F: 972.767.4370<\/p>\n<p>18170 Dallas Parkway<\/p>\n<p>Ste. 304<\/p>\n<p>Dallas, TX 75287<\/p>\n<p>NMLS# 234770<\/p>\n<p>Apply at: <a href=\"http:\/\/www.mikeclover.com\/\" target=\"_blank\" shape=\"rect\">www.mikeclover.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gift funds are the path to home ownership for many today. They may constitute part or all of the down payment, the closing costs, and\/or the financial reserves. In fact, most borrowers purchasing a one to four unit principle residence &hellip; <a href=\"https:\/\/www.mikeclover.com\/blog\/2014\/08\/17\/closing-your-home-loan-with-gift-funds\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/338"}],"collection":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/comments?post=338"}],"version-history":[{"count":2,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/338\/revisions"}],"predecessor-version":[{"id":776,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/posts\/338\/revisions\/776"}],"wp:attachment":[{"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/media?parent=338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/categories?post=338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mikeclover.com\/blog\/wp-json\/wp\/v2\/tags?post=338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}