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Old 06-25-2008, 10:55 AM
 
3 posts, read 5,333 times
Reputation: 10

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Hi there, I am a first time buyer, I worked on my credit in the last year and right now my score is 640 with all collections paid and a decent revolving credit(<10% balances). I also have a decent income for a while now. Here is the thing I am getting my downpayment as a gift from my parents in the next month or so, do you guys think I should wait until that money is in my bank to get a preapproval or I should start right now? I tried with one of my friend's recommended mortgage for a FHA and got approved with a condition that I will have that money in my bank account when at closing, I am very confused as to if I should shop for more lenders so my credit wont get hit too much since I am getting all the checks in that 14 day window or wait for one more month and once the money is in then shop around? what do you guys think? thanks in advance

ps: I live in NJ and looking in NJ
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Old 06-26-2008, 12:29 AM
 
Location: San Jose, CA
7,688 posts, read 26,718,658 times
Reputation: 3592
The money has to be seasoned - in your account, not someone else's - for either 60 or 90 days before you use it for a down payment. The banks have gotten very strict about this recently.
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Old 06-26-2008, 08:49 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,638,927 times
Reputation: 1008
Money doesn't have to be seasoned if it's a 'gift', and it has to be documented. Your parents can write out a check directly to the title company at closing.

Also, the window has changed to 30days, and has been like that for a while.

Quote:
Originally Posted by first_time View Post
Hi there, I am a first time buyer, I worked on my credit in the last year and right now my score is 640 with all collections paid and a decent revolving credit(<10% balances). I also have a decent income for a while now. Here is the thing I am getting my downpayment as a gift from my parents in the next month or so, do you guys think I should wait until that money is in my bank to get a preapproval or I should start right now? I tried with one of my friend's recommended mortgage for a FHA and got approved with a condition that I will have that money in my bank account when at closing, I am very confused as to if I should shop for more lenders so my credit wont get hit too much since I am getting all the checks in that 14 day window or wait for one more month and once the money is in then shop around? what do you guys think? thanks in advance

ps: I live in NJ and looking in NJ
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Old 06-28-2008, 07:49 PM
 
Location: Cary, NC
1,036 posts, read 3,758,319 times
Reputation: 510
Quote:
Originally Posted by renriq02 View Post
Money doesn't have to be seasoned if it's a 'gift', and it has to be documented. Your parents can write out a check directly to the title company at closing.

Also, the window has changed to 30days, and has been like that for a while.

Just to add to this.... They may however ask for a bank statement from your parents, to show they have the 30 day seasoning. That is to make sure it is actually their money and not a loan or illegal transaction that they obtained and then "gifted" to you to circumvent rules.

Usually a bank statement from the gift source, a check copy and a gift letter stating it is not a loan is all that is needed.
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Old 10-17-2008, 11:51 PM
 
4 posts, read 17,173 times
Reputation: 11
Default Downpayment Question

If you are doing FHA, the downpayment can be a gift from your parents. They need to provide you with a gift letter and paper trail as to where the money is coming from and how it goes into your account (ex. deposit slip and money hitting your account). Lenders are pretty strict about this. If you have any questions, let me know, i will be happy to help you.
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Old 10-18-2008, 02:08 PM
 
392 posts, read 1,454,918 times
Reputation: 134
Gift as FHa is ok. For conv, it probably needs to be inyour bank for 60 days or so (seasoned). Good luck.
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Old 10-18-2008, 05:35 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,638,927 times
Reputation: 1008
Conventional -

You need to put 5% if the donor will give less than 20% down.
If the donor will put 20% down, then you dont need to put any money.

There is no seasoning requirement if the gift can be documented
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Old 10-19-2008, 12:14 PM
 
Location: MID ATLANTIC
8,177 posts, read 20,168,706 times
Reputation: 9418
Go see a lender now. Gift money is totally acceptable on an FHA and it's far easier to get the documentation correct the first time, than to go back and try to re-trace and document after the fact. What you were told in the past is correct (for the most part), the money does have to be in your account (or in your control - in our area, we have the donor give the gift in a cashier's check payable to you and the closing attorney for you to endorse to the attorney at settlement - the check is in your control and we don't have to drag your account back into the picture again). But find a lender you like and feel you can trust and get their guidelines. Everyone has a different approach to satisfy the same requirement.
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