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Down Payment Gift Money

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Anonymous
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Down Payment Gift Money

My mother in law has graciously offered to gift us some money for the down payment of our first house.  The problem is that she only has the funds available in cash and if she deposits the funds now, they won't be seasoned enough.  I know cash is a no-no so instead she offered to write a check off her credit card, give us that and then use her own cash to pay it right back.  My LO hasn't gotten back to me on whether this would cause issues or not.  I figure as long as there's a copy of the check, the deposit slip and the gift letter, we're good to go.   Anyone have experience with this? Thanks, all you smart beautiful people!

Message 1 of 2
1 REPLY 1
DallasLoanGuy
Super Contributor

Re: Down Payment Gift Money

on fha i think the gifter can borrow those funds.... so you should be ok. check with your lender.

 

on conventional, they do not address(in my guidelines) whether borrowing the funds to gift is ok or not.... which usually means it is NOT

 

again. ask your loan officer.

 

Retired Lender
Message 2 of 2
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