The Gift of Giving – Gulfport Home Down Payments
What is Considered a Gift?Funds that come from family members, close relatives, parents or siblings are generally considered as gifts. Additionally, funds that come from an employer, charity organization, labor union or person concerned with the borrower can be gifts. Because the FHA has put in place requirements that limit an unqualified donor, it is imperative to have all documentation and proof in place as you begin the home search.
Source of Funds
The FHA will look for signed letters that explain the source of funds as well as deposit slips, protecting the agency and lending company from defaults. Statistically, evidence has accumulated that shows that borrowers that do not put any of their own funds into the down payment are more likely to default on the loan. Because many of these borrowers actually have no investment in the home, they are statistically more likely to default or go through foreclosure. This is not of benefit to the housing insurance fund.
All verification should be as represented and documentation provided along the way, since the FHA has made buying an affordable home possible. Any legitimate consequence will be allowed, as long as documentation is provided.
Receiving a gift for a Gulfport home down payment is a wonderful benefit. Remember that the giver will need to prove, with a certified cashiers check, that it is actually their money.
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