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So my girlfriend and I are buying a new home and her parents are gifting us 6k to go towards our down payment. My girlfriend just switched jobs this month and because of that, the lender wont allow her to be on the loan. My lender informed me that because she is not on the loan, her parents cannot gift us the funds. I googled this guideline and I have found that as long as the person gifting you the funds is a close friend it is okay. My girlfriend is also going to be on the title just not on the loan. Does anyone have any help for me? Do you know where I can get a copy of FHA's official guidelines?
Thanks.
Is the lender saying she cannot be on the loan because she hasn't had 30 days worth of earnings at the new job yet? Pretty much all lenders will require her to have had at least 30 days worth of earnings (base earnings counted only, not any commissions or variable income)? If your closing date is far enough out to where she'll have the 30 days' of earnings at the new company prior to closing, then that should work. If she has she gone from a W2 income to a 1099 (contractor) income or a W2 income with a low base, then I could see where that would not work.
As far as the relationship between you and her parents, unless you can document a long-time relationship with them (example: you have lived with them for a while and can provide doc'n to that effect, they cosigned on a car loan with you, etc), it will be very difficult for an underwriter to sign off on that. Maybe it used to be easier to get underwriters to do that, but not anymore- they're under more scrutiny from HUD/FHA than ever before.
It sounds like the GF changed her line of work. For example, if you have a someone working at a car wash that switches jobs and now a healthcare worker, FHA is going to require 6 months on the new job. IF she is in a related field (like retail to retail, administrative to administrative, etc), there is no time requirement on the job with a 2 year history.
Even if she changes jobs every 4 months........as long as it's a similar line for two years, her earnings can be averaged to arrive at a monthly income.
Now, those are FHA guidelines. Troubled times bring lender overlays, where lenders add their own requirements in addition to FHA's requirements. There are still lenders out there that underwrite to FHA's written guidelines. It may be that's who you need to find.
I have a similar situacion with my lender. I have made 2 deposits in my previous statements one done in Jan $2500 cash coming and another $ 2,400 in cash coming from my partner who is not applying on the loan. So they're questioning where that money is coming from. He owns a bakery bussiness and that is part of his cash flow. He does not have a regular check from an employer as he's a self-employer. This money has nothing to do with my income, or the money I'll be using towards my downpayment and closing cost. The is an extra income I get from him towards kids expenses and other bills from the house that goes out of our joint account. Well they're giving me a hard time due this issue. The only trail we have for that money is his bakery daily sales... I don't even know how all this deal will resulst after all but I'm two weeks of closing and still don't have a final loan approval... it's a horrible feeling!
Kind of off the subject but... I hope you are having an attorney draw up an agreement between you and your friend about how things will be divided if you have an argument and decide you are no longer friends. Putting her name on the title without being on the mortgage gives her ownership but no responsibility. It leaves you in a very bad spot financially. Easy to get into home ownership with a friend but very hard to get out if you need to at some later point (and very expensive). It is possible that the lender might not let her be on the title without also being on the loan. A written agreement would be a very good idea.
I have a similar situacion with my lender. I have made 2 deposits in my previous statements one done in Jan $2500 cash coming and another $ 2,400 in cash coming from my partner who is not applying on the loan. So they're questioning where that money is coming from. He owns a bakery bussiness and that is part of his cash flow. He does not have a regular check from an employer as he's a self-employer. This money has nothing to do with my income, or the money I'll be using towards my downpayment and closing cost. The is an extra income I get from him towards kids expenses and other bills from the house that goes out of our joint account. Well they're giving me a hard time due this issue. The only trail we have for that money is his bakery daily sales... I don't even know how all this deal will resulst after all but I'm two weeks of closing and still don't have a final loan approval... it's a horrible feeling!
That could be a big problem if any of those funds are being used toward your purchase.
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You can get a gift from your parents-in-law.
