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We're looking into buying a house soon. We've received numerous gifts from family, almost all of which are/can be sourced (statements, etc).
One of the gifts (the largest, in the tens of thousands), however, the gifter is not willing to disclose the statements for it (not that it's shady, he's a very private person).
Now, my broker says that not only can I not use that for any part of the mortgage (down payment, closing costs, upfront mortgage insurance, etc) but I can't even deposit it as any deposits in my accounts have to be fully sourced. We do have the check, with has all of his information. Just not statements (we have our statements, of course).
Your only choices are to deposit it and wait for 2 bank statements that show the money so they won't question the deposit, or your family member has to show documentation of the funds. You are asking to borrow their money so you play by their rules. It doesn't matter if you don't like their rules, you just don't get their money. All lenders will have the same requirement of deposits into an account, even if it was a mere $200 that wasn't from your work paychecks.
Tell your gifter to get over the privacy issue, or wait 2 months. Simple.
Deposit it over 60 days in advance of looking for a house?
+1
it wouldn't matter in this case anyway - just a note/explanation of where *you* got the funds would be enough for the underwriter - they just need to document in their file that it's a gift & not a loan. Where the "gifter" got the money isn't your lender's concern.
just a note/explanation of where *you* got the funds would be enough for the underwriter - they just need to document in their file that it's a gift & not a loan. Where the "gifter" got the money isn't your lender's concern.
This is not true. The gifter has to show it came from their account and not from under the mattress. The gifter has to provide his bank statement to show the money was there for him to gift, and not show a large deposit and then the same large withdrawal, as then it would show the money wasn't his to gift, but that it came from somewhere else and then that has to be sourced too.
We're looking into buying a house soon. We've received numerous gifts from family, almost all of which are/can be sourced (statements, etc).
One of the gifts (the largest, in the tens of thousands), however, the gifter is not willing to disclose the statements for it (not that it's shady, he's a very private person).
Now, my broker says that not only can I not use that for any part of the mortgage (down payment, closing costs, upfront mortgage insurance, etc) but I can't even deposit it as any deposits in my accounts have to be fully sourced. We do have the check, with has all of his information. Just not statements (we have our statements, of course).
What are my choices here?
Would the person who is giving you the money be willing to share directly with the bank and NOT with you? Also, depending on the type of mortgage you are looking to get you can have the gifter send the money directly to the closing attorney and bypassing you. You'd be able to get a gift letter from the gifter and you can avoid sourcing the funds... read about it here - https://www.fanniemae.com/content/gu...b3/4.3/04.html
This is not true. The gifter has to show it came from their account and not from under the mattress. The gifter has to provide his bank statement to show the money was there for him to gift, and not show a large deposit and then the same large withdrawal, as then it would show the money wasn't his to gift, but that it came from somewhere else and then that has to be sourced too.
look at the link posted above- , a copy of the check & a gift letter are all that is necessary.
look at the link posted above- , a copy of the check & a gift letter are all that is necessary.
All lenders have their own overlays. I've never had a lender that didn't want to source all funds. Lenders are allowed to have stricter rules than Fannie and Freddy and HUD etc...
There's more than Fannie Mae at play, there's the Bank Secrecy Act in play, which requires conclusive documentation of the transfer of funds and the borrowers rights to the access of the gift funds. I think you will have a tough time finding someone to ignore those requirements, regardless what Fannie says. As someone that loves to put guidelines in front of underwriters in protest, my personal experience with Suspicious Activity Reports (SARs) tells me Fannie is not always the last word.
We're looking into buying a house soon. We've received numerous gifts from family, almost all of which are/can be sourced (statements, etc).
One of the gifts (the largest, in the tens of thousands), however, the gifter is not willing to disclose the statements for it (not that it's shady, he's a very private person).
Now, my broker says that not only can I not use that for any part of the mortgage (down payment, closing costs, upfront mortgage insurance, etc) but I can't even deposit it as any deposits in my accounts have to be fully sourced. We do have the check, with has all of his information. Just not statements (we have our statements, of course).
What are my choices here?
I would ask the person who I want to borrow from to open a separate savings account, will all the money you need plus maybe $500 more for them to keep in the account. Wait 2 months, then they should be able to give you the statements and account numbers, when all is said and done they can transfer the extra $500 back to their own account once your gift funds are out and close that account. I would offer to go to the bank with them to set it up.
I would maybe wait 3 months, because if the account shows a large cash or transfer deposit into the account they may question the source.
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