Monday, January 13, 2014

Gift Letter Funds for a Kentucky FHA Mortgage Loan Down payment

Gift Letter Funds for a Kentucky FHA Mortgage Loan
Gift Letter

Acceptable Donors: Refer to specific loan program guidelines for approved donors. Donors may include a "relative" defined as a spouse, child, grandparent, or other individual related by blood, marriage, adoption, or legal guardianship, a domestic partner, fiancé, or fiancée. In addition, FHA allows gift funds from an employer or close friend with a clearly defined family-type relationship not arising out of the loan transaction.


DONOR(S) MUST PROVIDE EVIDENCE OF THEIR ABILITY TO DONATE GIFT FUNDS AND EVIDENCE OF RECEIPT OF THOSE GIFT FUNDS FROM THE DONOR’S ACCOUNT MUST BE PROVIDED PER THE FOLLOWING: If the gift funds ... Then the required documentation is ...
Are in the borrower’s account and the loan is AUS approved
 
• Document according to AUS findings
 
Are in the borrower’s account and the loan is not AUS approved (government only)
 
A copy of the canceled check or other withdrawal document showing that the withdrawal was from the donor’s account, AND
• Borrower’s deposit slip and bank statement showing the deposit.
 
• Are to be provided at closing AND
In the form of a certified check from donor’s account
 
Bank statement showing the withdrawal from the donor’s account disclosed in the gift letter, AND
Copy of the certified check made payable to escrow company
 
• Are to be provided at closing AND
Are in the form of a cashier’s check, money order, official check, or other type of bank check
 
Have the donor provide a withdrawal document or cancelled check for the amount of the gift, evidencing that the funds came from the donor’s personal account disclosed in the gift letter, AND
• A copy of the check, AND
• Borrower’s deposit slip or bank statement that shows the deposit and new balance OR the check may be given directly to the Title Company or Realtor who must provide written acknowledgment identifying the specific check received & being held in escrow by the Title Company
 
Are to be provided at closing AND
Are in the form of an electronic wire transfer to /or cashier’s check deposited with the closing agent
 
Have the donor provide documentation of the wire transfer from donor’s account disclosed in gift letter, AND
• Written acknowledgement that the specific check or wire transfer was received and is being held in escrow by the Title Company
 
Are being borrowed by the donor, AND
Documentation from the bank or other savings account is not available
 
Written evidence provided by the donor to evidence that the funds were borrowed from an acceptable source. Funds may not be provided by an interested party to the transaction, including the lender.
• Borrower’s deposit slip or bank statement showing the deposit and new balance OR
• Written acknowledgment that the specific check was received