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Categories: Brett's Mortgage Blog

The Rules On Gifting For These Two Programs…

Good Morning!

Were you thinking you might need a gift for the down payment when you get a mortgage?

I wanted to go over the gifting rules for FHA and Conventional loan programs…

Conventional:

·         If the gift is less than 20% of the purchase price, then the borrower still has to have 5% of the purchase price from their own funds.

·         The giver of the gift will have to provide bank statements that show they had the ability to give the gift.

·         Gifts from a spouse or finance are not considered to be gifts, but are considered your own funds.

FHA:

·         The whole 3.5% down payment can be a gift from a relative.

·         The giver of the gift will have to provide bank statements that show they had the ability to give the gift.

·   You can also borrow your down payment from a retirement account.

That’s it for today.

Thanks for reading!  …and, have a great day!

Brett

Brett Sampson

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