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Source of gift funds

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Ravensfan2001
Established Contributor

Source of gift funds

My mother-in-law gifted $1500 towards buying a house. She signed a gift letter stating that what she gave us was cash on hand. She declined to give bank statements, which the UW already asked for. What now? There's a history of mistrust with a family member (not us), so I'm positive we won't be able to change her mind. But, anyway, it was cash on hand, so the bank statements would be irrelevant, anyway, right?

Starting Scores: (4/16/12 lender pull) TU 596 | EX 550 | EQ 576
Current Score (9/3/15): Wally TU 639 | Amex EX 628 | DCU EQ 639
Goals: Homeowner as of 9/27/2013. Last app 8/1/15. TU-5; EX-16; EQ-13. Aiming for ZERO inqs.
Message 1 of 8
7 REPLIES 7
foofighter74
Established Contributor

Re: Source of gift funds

I've always been under the impression that "cash on hand" is not an acceptable source of down payment funds.  seems like it would have been easier for her to just deposit the money, write you a check, and you deposit the check.  Then you'd provide the underwriter with a copy of the cancelled check, your bank statement, and a letter saying the money was a gift and you don't have to pay it back.

Message 2 of 8
DallasLoanGuy
Super Contributor

Re: Source of gift funds

bank statements prove she had the money to gift.

 

your loan officer needs to huddle with the uw and see if there is a solution.

 

we wouldn't take the cash.

 

Retired Lender
Message 3 of 8
Ravensfan2001
Established Contributor

Re: Source of gift funds

It's too late, though. I already deposited the cash before I knew about all this. The money went towards earnest money deposit.

Starting Scores: (4/16/12 lender pull) TU 596 | EX 550 | EQ 576
Current Score (9/3/15): Wally TU 639 | Amex EX 628 | DCU EQ 639
Goals: Homeowner as of 9/27/2013. Last app 8/1/15. TU-5; EX-16; EQ-13. Aiming for ZERO inqs.
Message 4 of 8
foofighter74
Established Contributor

Re: Source of gift funds

They may not count it then.  You may have to get the $1500 some other way.  Just be prepared. 

Message 5 of 8
Ravensfan2001
Established Contributor

Re: Source of gift funds

My LO and LP wrote a letter for me to sign, hoping that will do. *fingers crossed*

 

My LO's team is doing everything they can to help. We'll see what they come back with.


Starting Scores: (4/16/12 lender pull) TU 596 | EX 550 | EQ 576
Current Score (9/3/15): Wally TU 639 | Amex EX 628 | DCU EQ 639
Goals: Homeowner as of 9/27/2013. Last app 8/1/15. TU-5; EX-16; EQ-13. Aiming for ZERO inqs.
Message 6 of 8
foofighter74
Established Contributor

Re: Source of gift funds

Best of luck! I think it will work out!

Message 7 of 8
Boldilocks
Established Contributor

Re: Source of gift funds

My parents gifted funds and it was complicated by being an international transfer (they live in Ireland, I live here - it was donated in pounds and arrived in dollars, that kind of thing).

 

My dad faxed a mini statement as they call them back home - it shows the tranaction and remaining balance and account numnber.  Full statements can only be got at the end of the month, and this was at the beginning of September so we didn't want to wait.

 

The UW wanted more - so what we were able to do to satisfy them was a letter from the bank on headed paper saying that they were gifting the funds, this was their account, and that they had enough funds to cover it.  UW was happy - as soon as she received that the file was sent off to USDA for approval.

 

Would your MIL be willing to do that??

 

Plus, any verification is supposed to go straight from her to the UW - you aren't suppowsed to be involved.  Would that alleviate the trust issues?

______________________________________________________
DH starting scores 02/10/09: EX - 543, EQ - 543, TU - 554
Current scores: EQ - 750, TU - 732
My starting scores 03/13/10: EX - 711 (LO pull), EQ - 692, TU 701
Current scores: EQ 736, TU - 732
Message 8 of 8
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