Do FHA Mortgage Lenders Allow Gift of Down payment To come from Friends?
FHA mortgage lenders refer to gifts or contributions of cash or equity with no expectation of repayment. Gifts may be provided by:
• a close friend with a clearly defined and documented interest in the Borrower;
• a close friend with a clearly defined and documented interest in the Borrower;
• the Borrower’s Family Member;
• the Borrower’s employer or labor union;
• a charitable organization;
• a governmental agency or public Entity that has a program providing homeownership assistance to low or moderate income families or first-time homebuyers.
• the Borrower’s employer or labor union;
• a charitable organization;
• a governmental agency or public Entity that has a program providing homeownership assistance to low or moderate income families or first-time homebuyers.
Can FHA gift funds come from the employer?
Gift Funds may be provided by the FHA Mortgage applicants employer or labor union. Any gift of the FHA Mortgage applicants required minimum investment must also comply with the additional requirements for Source Requirements of FHA Mortgage applicants Minimum Required Investment (MRI) found in the FHA mortgage Handbook.
The FHA Mortgage lender must obtain a gift letter signed and dated by the donor and FHA mortgage applicants that includes the following:
• the donor’s name, address, and telephone number;
• the donor’s relationship to the FHA mortgage applicant;
• the dollar amount of the gift; and
• a statement that no repayment is required. .
FHA mortgage applicants salary advance cannot be considered as assets to close.
Can gift funds be provided from a friend or other unrelated party?
Gifts refer to the contributions of cash or equity with no expectation of repayment. Gifts for down payment may only be provided by:
• the Borrower’s Family Member;
• the Borrower’s employer or labor union;
• a close friend with a clearly defined and documented interest in the FHA mortgage applicant;
• a charitable organization;
• a governmental agency or public Entity that has a program providing homeownership assistance to low or moderate income families or first-time homebuyers.
• the Borrower’s Family Member;
• the Borrower’s employer or labor union;
• a close friend with a clearly defined and documented interest in the FHA mortgage applicant;
• a charitable organization;
• a governmental agency or public Entity that has a program providing homeownership assistance to low or moderate income families or first-time homebuyers.
