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I'm having an issue with gifted money. MIL has given us $10K in the form of a check. My lender is wanting, not only a letter that states the money is a gift and not a loan but also wants copies of MIL bank account statements showing the money coming out of her account and her balance.
We planned on using this money to help with the down payment. Do all lenders require this type of documentation?
Yes, this will be required of all lenders. They want to see a paper trail of the money. All your mom has to do is take a fat marker and cross out her account number, but the print out must have her name along with the withdrawal of the $10k. If you want a mortgage, you play by their rules.
I'm having an issue with gifted money. MIL has given us $10K in the form of a check. My lender is wanting, not only a letter that states the money is a gift and not a loan but also wants copies of MIL bank account statements showing the money coming out of her account and her balance.
I told my lender I have no issue with the letter that is fine. But making it a royal pain in the rear for someone to give you a gift is ridiculous. My MIL will not provide copies of her bank statements for this purpose. She feels as though it is an invasion of her privacy. Told my lender this and her reply was, "no problem, just don;t put it in your checking account and don;t use it to purchase the home (down payment, inspections, etc)."
We planned on using this money to help with the down payment. Do all lenders require this type of documentation?
Yes. The hardest gift to document is the one already received. The documentation for this is intrusive to the donor. Now conclusive proof is required to show the transfer of funds. Had you discussed the gift prior to moving money with your lender, chances are your lender would have provided you with a less intrusive method.
Yes. The hardest gift to document is the one already received. The documentation for this is intrusive to the donor. Now conclusive proof is required to show the transfer of funds. Had you discussed the gift prior to moving money with your lender, chances are your lender would have provided you with a less intrusive method.
The money has not been moved, it is in the form of a check and has not been deposited nor posted.
Okay, the attached is what we do and it avoids intrusion into the donor's business. We work with all of the major investors and not once have we been turned away.
Run it by your lender - they may thank you for showing them an easier process. If the gift is not verified in your account, the Gift must be listed as a credit on the HUD as a "Gift." Or, they may just have that wall of no erected and blow you off.
BofA made us do this on a FHA loan. We had to source the money with bank statements. Needed a bank statement from the gifter and the recipient. They would not budge on this.
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