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Valued Member
Posts: 36
Registered: ‎10-05-2012
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Joint accounts and gifts

[ Edited ]

Ok, so I'm really confused.  I was pre-approved for an FHA loan, and just signed the final agreement papers with the seller of thouse I want to buy.  Now we'll be going through the loan application, inspections, etc.  In speaking with my LO, he knows that I have a fiance (domestic partner...we're not officially engaged...will get married eventually, but not this year...we do have a family together though).  And he also knows that a small portion of my funds for closing will be coming in the form of finace's tax return, which always gets direct deposited into our joint account.  LO says this would be treated as gift money, since fiance is not on the loan app.  However, I've heard from other LOs that the joint account holder can do a LOE stating that I have full access to all funds in the account.  Shouldn't that negate the need for a gift letter?  My LO also states that the return should be a check, that can be copied and documented.  Getting a check for a return takes a lot longer than direct deposit...don't want to miss any deadlines.  Any ideas from any other LO's?  I mean...I don't have to use his return for closing...I can use other funds if I have to, but that's what was planned for, and explained to the LO in the beginning. 

 

Edit: I spoke with LO again about this...he now says that direct deposit is fine for the tax refund...but that it's still considered a gift, even if it's in our joint account.  That's fine...I'll do a gift letter...was more concerned about need the refund as a check.

 


Starting Score: 531
Current Scores: EQ-662; TU-679; EX-660
Goal Score: 720


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Established Contributor
Posts: 577
Registered: ‎08-17-2013
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Re: Joint accounts and gifts

Direct deposit into joint account should not count as gift funds. For my non-purchasing spouse all I required was the full access letter they did not question the source of her funds in the account, which was direct deposited paychecks. Unless it is different because you are not married.

 

Getting a check for the tax refund does not sound like a request that makes much sense.

 

Can you ask the LO to check with his underwriters?

Valued Contributor
Posts: 1,464
Registered: ‎07-29-2008
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Re: Joint accounts and gifts

Sorry I dont get the resistance - a gift letter is as simple as a letter saying that you have full access to funds - Give the lender what they want?

Thats the easiest way to get a loan done - This is a non spouse non family member so if they want it as a gift thats what they want.

You might change lenders and find another that would be ok with the letter stating you have full access but is it worth it?

 

Good Luck

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Valued Member
Posts: 36
Registered: ‎10-05-2012
0

Re: Joint accounts and gifts


BrianB_The_Loan_Professor wrote:

Sorry I dont get the resistance - a gift letter is as simple as a letter saying that you have full access to funds - Give the lender what they want?

Thats the easiest way to get a loan done - This is a non spouse non family member so if they want it as a gift thats what they want.

You might change lenders and find another that would be ok with the letter stating you have full access but is it worth it?

 

Good Luck

Brian


Brian,

 

Not resistance...I was more concerned about the request for the refund in the form of a check, instead of direct deposit...which takes way longer.  Afraid waiting for that would put me past the commitment date, that's all.  

 

Luckily, we just talked more and he said that direct deposit is fine...we just need documentation of everything...which is a no-brainer.  Was just a little worried about the check thing. 


Starting Score: 531
Current Scores: EQ-662; TU-679; EX-660
Goal Score: 720


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Valued Contributor
Posts: 1,464
Registered: ‎07-29-2008
0

Re: Joint accounts and gifts

Got you - yes checks are easier to document however a direct deposit can be documented 

 

You will be fine - 

 

take care

B

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
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Senior Contributor
Posts: 3,399
Registered: ‎08-24-2013
0

Re: Joint accounts and gifts

I'm betting that the documentation request is driven by the funds not being seasoned at the time of closing.

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