Loan with Gift Help

[roshan]

here is my information:

salary: 80K per year (same job for 3 years.)

Savings:  25K currently

Planning to buy home around 400K  with Either 20K down or 60K down 

I am getting gift for 10K from my dad. He is ok with giving Letter for gift and his bank statement as proof to lender

Now here is second big issue I think:

I CAN get gift of 40K from my Father-IN-LAW too. He is happy to give gift and gift letter which says i don't need to repay him anything. BUT he may or may not want to give his bank statement to my lender.  (I still need to make sure this with him.)

He had 36K in his bank account from last 6 months. He is partner in a gas station which pays him lum sum of money every month or two. so he just got 25K CASH deposit in his bank account on Feb 1st.

so do you think this 25K cash deposit can create problem with my lender???

Also which loan would be better for me conventional loan or FHA?

(FYI: my wife make 42K per year and she has new job from last 6 months. Before she was student in same field as her job. But I am not planning to use her for loan because her credit score is low about 700 with 2 late payments 2 years ago and one charge off for $29.)

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Update:

to give you little more update on this issue:

I called Walls Fargo LO today in my town, and I explain him everything. Full Truth. Nothing hiding.

I told him i have 25K in my bank saving and getting 40K from InLaw as gift which he can write gift letter and show check for it. He can even give his bank statement for this month. but he has 25K cash deposit in his account in edition to excising 35K.

So here is what he told Me:
You can have your inLaw give you gift money now. Deposit it in your bank account. 
Do this BEFORE YOU APPLY FOR LOAN WITH US. Before even we Pre-Approve you or any application with US.

If you get money before your loan application than we only need gift letter for that deposit in your account and WE DO NOT NEED YOU INLAW'S BANK STATEMENT.

Yes he said this. He can not ask for my InLaw's bank statement if the gift deposit was before Loan Application.

I asked him to make sure twice and he said same thing.

BUT IS IT REALLY TRUE?????

[mlearma]

I just went through this with my lender.  I was not using a gift for my new house, but for one that I had to sell short a few months back.  My mother gifted me $6000 and had to give a copy of her bank statement, copy of the check clearing and a signed gift letter.

This didn't even have to do with the new house, but the lender stated "no statement, no loan"

My mother is very private and sent it to the lender via Fed Ex in confidence.  She didn't want it on a fax machine or for me to even see it.

Nothing can be blacked out on the statement either.  If it is....no loan.

At least that is my situation.

[roshan]

thanks for quick reply.

I am sure getting bank statement is not a problem at all for me from my InLaw.

The only thing in that statement is that 25K cash deposit which i think may create problem.

[anh2lua]

I think it's depends on who the lender is.

I gave my sister 10k last month to help on her down payment.  The LO only asked me to fill out a gift letter and sign it.  They DID NOT ask for my bank statement.  My sister is now a happy home owner.

Didn't WF told you if you deposit the cash BEFORE starting the paper work with them, then they won't bother asking for any prove?

[roshan]

WF told me that if i have Money as Gift from my InLaw before Loan Process than I only need gift letter. No StateMent from my InLaw.

But I really want to make sure this is TRUE?

[anh2lua]

I believed that is true.  Don't worry too much, that will stress you out :-)

[LondonMassey]

It is my understanding that conventional loans require proof of funds and they can not be gifted.  FHA allows gifted funds.  If you are a first time home buyer or have not owned a home for X amount of years, I would go with FHA.  As far as bank statements of the "gifter" are concerned, I was told for FHA that the statements for the gifter were not required by my lender (I only wish I was getting gifted funds), and I was also told in a home buyer course I completed that lenders won't scrutinize the "gifter's" bank statements, all they care about is following the funds.  If the gifter has a large cash deposit, that's their account and they are not the buyer.  They even said that if a "gifter" was to deplete all available balances on their credit cards for cash then deposit that cash into their bank and then deposit into your bank, there is no issue.  They don't care where their funds came from just that they acknowledge they gave you the funds and they do not have to be payed back.  (As pertaining to FHA)

[roshan]

Thanks everyone for your input.

More Update:

I talked to another Bank, Gave them full true detail of gift money and cash deposit in gifter's account and This bank said They NEED gifter's Statement for gift with gift letter and check copy. ( For Any type of loan Conv. or FHA.)

So confusing: talked to total 3 banks LO
2 Said NO statement for Conv. loan - Only for FHA
1 Said Statement for ANY LOAN.