fha closing costs/ downpayment/ gift question (bank account, required, need, cost)

[rubyruby04]

for fha the downpayment funds have to be in my account for 2 months, right? Is there a way to use gift money for part of the downpayment? can gift money be used for closing costs or other expenses related to closing?

[VictorBurek]

Yes, FHA will allow for gift money for downpayment and closing costs. The person giving the gift must sign a gift letter stating that they know the money is a gift and they dont require it to be paid back. In addition, they have to show where the money comes from by providing bank statments or what ever statment they have from the account that they pull the money from.

There has to be a paper trail for the source of the funds.

[rubyruby04]

thanks!

[VictorBurek]

You're welcome.

[weiser302]

Can you use gift money for all cost ie... downpayment and closing costs or does Fha require you to use some of your own money???

[TimtheGuy]

Originally Posted by weiser302

Can you use gift money for all cost ie... downpayment and closing costs or does Fha require you to use some of your own money???

You do not need to use any of your own $$ on a FHA deal. It can all be gifted.

[jdrobbins]

I recently ran into this problem. Bank of AMerica said that I had to have the down payment money in the account for 2 months, but Wells Fargo said that I only have to show proof that my bank account has been open for at least two months by bringing the last 2 months bank statements even tho I've only had the down payment in my account for 1 month? Who's right? Bank of America said they cant start the closing process until our money has been there for 2 months. And Wells Fargo says as long as i show 2 months bank statements if I have the money now then thats fine.

[weiser302]

Im being told that you must provide3.5% of own money seperate from gift funds towards downpayment and closing costs is that true what can I reference for proof??

[SmartMoney]

For an FHA transaction, 100% of the funds required for down payment and closing may be a gift. Buyer does not need one dime of his own money.

Now about the gift, if must be from a blood relative and it must be conclusive that the donor is the one that provided the funds.

[weiser302]

Thanks, now is there a max gift amount per relative???