When it comes to gift funds for a mortgage, it’s important to understand the guidelines. One key aspect is that gift funds given by a Borrower’s domestic partner or relative are considered as their own funds. This means that the Borrower can use these funds towards their down payment or closing costs, without having to worry about meeting additional requirements.
Here are some important details to keep in mind:
- Gift funds must be given by a domestic partner, relative, fiancé or fiancée that has lived with the Borrower for the last 12 months.
- The Donor must provide a certification stating that they have lived with the Borrower for the last 12 months and will continue to do so after closing.
- The Donor must also provide documentation proving the source of the gift funds, such as a bank statement or gift letter.
By following these guidelines, Borrowers can use gift funds from their domestic partner or relative towards their mortgage without any additional hurdles. This can be a great option for those who may not have enough savings on their own to cover the down payment or closing costs.
Overall, it’s important to work with a knowledgeable mortgage company that can guide you through the gift fund process and ensures that you meet all of the requirements. With the right support, we can make your dream of homeownership a reality.
Connect with one of our loan consultants to learn more.