Mortgage Loans

[ChangiBear]

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.  

[tooleman694]

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.

[ChangiBear]

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.

[Wecandoit]

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.

[BCullum]

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

[ChangiBear]

Thanks everyone.

[DallasLoanGuy]

i might be leery of that loan officer

[ChangiBear]

Oh oh. Yeah, I'm searching for others.