Gift letter for downpymnt Question

[Chbraswell]

My question is , if the majority of your money appears to come from gifting, will the u/ws look at you poorely?  I was initally told i would qualify for something that is 3% down and I had that, but then was told that It would be 5% down which will come from my parents.  Do they look at you as irresponsible because the majority of your dwnpymnt is a gift?

[Legen_dary]

I don't see why they would view you as irresponsible? As long as the proper procedures are followed it should be viewed as your contribution by UW.

[ShanetheMortgageMan]

It's a little better if your down payment is coming from your own funds, but as long as the loan program permits it then gift funds are fine too.  If you have borderline credit, or trying to stretch what you can qualify for, it could present an issue. For example I was trying to get someone with a 620 score approved through automated underwriting with a 50% debt ratio, and it wouldn't approve if I marked the down payment was coming from gift funds... but if I marked it as coming from their own checking/savings then it approved that debt ratio. 

[Chbraswell]

thanks so much guys!