With an FHA loan can you use gifted money?
Rachael H asked:
With my loan the bank wants 3% for the downpayment. Can you have that money gifted to you from a family member?
With my loan the bank wants 3% for the downpayment. Can you have that money gifted to you from a family member?
Thanks =)
gavertec
December 4th, 2008 at 8:11 pm
just if you are first time buyer
December 7th, 2008 at 1:18 am
If it’s a real gift and not a disguised loan that your relative expects you to pay back, yes. If the gift is more than $10,000, the relative may also owe gift tax.
If your relative eventually wants the money back an approach I’ve used is to have the relative be a co-owner of the house, e.g., if he puts down 5% of the purchase price, he’s listed on the deed as 5% owner of the house, and you’re the 95% owner (being responsible for mortgage, taxes, maintenance, etc.) Then when the house is sold, the relative gets 5% of the sale price.
December 7th, 2008 at 9:59 pm
Yes. (check FHA guidelines)
December 10th, 2008 at 4:05 pm
Gift funds from a relative can cover down payment and closing costs for an FHA loan. There are specific requirements surrounding it, including documentation, but yes you can get the money from a relative.