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conventional loan downpayment...gift?

New Contributor

conventional loan downpayment...gift?

I've been reading here that the first 5% has to be my own money and that the rest can be a gift.  But I just asked my LO, and she said that all of it can be a gift.  Now I'm confused.  

Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)
Message 1 of 8
7 REPLIES
Valued Contributor

Re: conventional loan downpayment...gift?

I think all of it can be a gift if its 20 percent down. But I think you still need skin in the game if your down payment is below 20 percent.

 

I don't know the exact rules, but I would imagine you would need at minimum 3 percent down out of your own funds. Unless of course you put down 20 percent, then it dont matter where the money is coming from.

Message 2 of 8
New Contributor

Re: conventional loan downpayment...gift?

I've read that too, but I asked her if I'm putting 5% down on a conventional, how much of that needs to be mine and how much can be a gift and she said all of it can be a gift.
Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)
Message 3 of 8
Highlighted
Established Member

Re: conventional loan downpayment...gift?

We are currently going through PrimeLending and we are going with a 5% down conventional loan. The lender said that for conventional loans you have to put down the first 5% from your own funds. Above and beyond that everything else can be a gift. As well, your other closing costs and prepaids can be a gift. We asked because there was a possibility that my husband's parents could put in another 5% and give us a total of 10% down, but that didn't work out.However, I'm not sure if the rule is lender specific.

Message 4 of 8
New Contributor

Re: conventional loan downpayment...gift?

Guidelines state that if over 20% the entire downpayment/closing can be gifted. If below 20% you must have 5% of your own money.

Lender Pull EQ 745 EX 734 TU 722
Message 5 of 8
New Contributor

Re: conventional loan downpayment...gift?

Thanks everyone.
Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)
Message 6 of 8
Super Contributor

Re: conventional loan downpayment...gift?

i might be leery of that loan officer

 

Retired Lender
Message 7 of 8
New Contributor

Re: conventional loan downpayment...gift?

Oh oh. Yeah, I'm searching for others.
Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)
Message 8 of 8