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Hi everyone,
I posted this thread in the real estate section, but now I see that there is a whole mortgage section, where I can get more help. My husband and I are building a house. However, I'm not sure will we run into trouble. Let me give you a little bit of background. We were able to come up with the half of our down payment on our own ( savings ), and my in-laws gave us the other half. They took the other half from their line of credit. Today, when we went to lock in the rate at the bank, which we did, our banker told us that we need to give our in-laws a letter for them to sign, saying that the money they gave us is the gift money etc. However, they also need to prove ( our banker doesn't know that they gave us the money from their line of credit ) that they had the funds for the money they gave us. Do you think that "line of credit help" that my in-laws gave us will give us any trouble, since it's a credit and not "savings" money etc.? ANY help will be appreciated. Thank you.
I have never heard (unless this is new) that your in-laws need to prove where the money came from. They can just write you a letter saying they gifted money from their account.
I have never heard (unless this is new) that your in-laws need to prove where the money came from. They can just write you a letter saying they gifted money from their account.
It's new. I just went through this same thing myself. The FHA requirements changed (recently, I believe) and, as a measure of fraud protection, the gifter has to prove they had the funds available to gift to you. In my case, the gifter refused to provide my lender with a bank statement, and instead had his bank write a letter indicating the funds gifted to me came from his bank account.
I'm not sure if the gifter gifting from a line of credit will cause you a problem, as its not your responsibility to make sure the gifter is making a sound financial decision. Best thing to do is ask your broker.
We will have to go to the bank in two weeks, so I guess we'll find out then will the bank "like it or not". This is our first time buying a house, so we didn't go through this process before and everything is so new to us...Thank you for your replies so far!!!
I would end this thread right now. Technically speaking you have played your cards.
Re-read your OP and I think the answer is clear.
S.
P.S. I say this not to be rude but to prevent you from being tempted by fraud. Be careful!
Thank you very much for your advice. We have never dealt with this situation, that why we didn't know what to do. Thank you everyone.
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