topic Re: Does FHA care where gift giver gets $?? in Mortgage Loans

Does FHA care where gift giver gets $??

goodygoody — Mon, 28 Jan 2019 01:22:13 GMT

I have a weird question...
A relative is buying a house, and can get a really nice one if I gift the down payment - which I can probably do with a small personal loan I was planning to get anyway. I wouldn't expect the relative to pay me back, so this would be a bonafide gift. But would FHA verify where I got the money? I know the home buyer cannot use loan funds for this. But do they care where the gifter got the money?

Re: Does FHA care where gift giver gets $??

NC_Mtg_Loaner — Mon, 28 Jan 2019 02:57:46 GMT

Generally speaking, no.

However, most lenders are required to verify that the donor has the capacity to provide said gift and this could lead to additional inquiries perhaps.

Re: Does FHA care where gift giver gets $??

Anonymous — Mon, 28 Jan 2019 03:16:02 GMT

I think so. I have been pre-approved for FHA and actually put an offer on a house this past week. The lender asked where I would get the 3k difference I needed for downpayment and he said if it was to be a gift he would need it to show as a transfer from their account to mine and he would also need their bank statement to indicate that they indeed had the money to gift.

Re: Does FHA care where gift giver gets $??

NC_Mtg_Loaner — Tue, 29 Jan 2019 22:13:48 GMT

@Anonymous wrote:
I think so. I have been pre-approved for FHA and actually put an offer on a house this past week. The lender asked where I would get the 3k difference I needed for downpayment and he said if it was to be a gift he would need it to show as a transfer from their account to mine and he would also need their bank statement to indicate that they indeed had the money to gift.

This is true, but most lenders won't be concerned if the donor borrowed money in order to provide the gift. Sourcing of the donor's gift funds is strictly in compliance with HUD standards and the USA Patriot Act in order to determine the donors capability of providing a gift.

Re: Does FHA care where gift giver gets $??

Anonymous — Wed, 30 Jan 2019 03:58:19 GMT

This is totally besides the point, but may I add that you are an amazing relative for even considering getting a personal loan just to gift someone in your family in order for them to get a good home. That fact is so rare and so special. I hope your relative appreciates you as much as you deserve! My relatives would never lmao. Good karma your way!