Seattle Home Real Estate Buying – FHA, VA Gift Funds Requirements
Government financing for Seattle real estate purchases will allow gift funds from a relative. Yes the gift funds can be applied directly for the down payment of a home purchase. Gift funds are truly a 100% gift; they will not be repaid to the donor. Accepting the gift funds does require a detailed processed but very simple to follow. Here are the simple step by step directions to follow to simplify the financial structure of your home purchase.
The underwriter is going to require paper trail from your relative’s bank account to show the funds are currently seasoned (available) to depositing into your personal savings/checking account.
Exact documentation Requirements
Requirements from the Donor:
*Complete Gift Letter – lender will provide (Gift Amount, Donor’s Relationship, Signature, Address, Contact Number, Borrower (s) Signature(s), and Property Address)
*Donor is required to provide a copy of the bank statement for the account the funds are gifted from.
*Provide a copy of the check or money order from the Donor to match the amount with the gift letter.
Requirements for the borrower:
*Deposit the gift check into your savings/checking account
*Once deposited, provide copies of your bank statement and check or money order to show proof the funds are available in your bank account. **TIP: Deposit the gift funds separately to easily show proof on the bank statement.
If you are interested in purchasing a new home please or have questions about Seattle home loans please contact us! We also have an online application here.
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