What Is Not Acceptable As Down Payment Gifts
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Let’s talk down payments again today. Specifically, getting a gift towards the purchase of your next house. Did you know there are only a few legal ways to gift a down-payment?
Check it out in today's video:
Here are a few that are NOT choices when it comes to getting a bit of cash towards that dream home of yours:
1. Arranging with the seller to increase the purchase price by $20,000 and then getting that back from the seller as a down-payment. Hmmm, lemme think about that one…NOT gonna happen!
2. A deposit from an unnamed source in your account during your mortgage process. All deposits need to be sourced and seasoned funds.
3. Having the seller pretend to “hire” you for a short-term job and then “paying” you in wages for your down payment. No-Way,Jose!
These scenarios will not only get you denied for a mortgage but could have you doing some time for mortgage fraud.
Think these are made up scenarios? Nope, all of these came from real-life stories from our Rates In Motion Approved Lenders. Thanks for sharing guys.
Now, before you worry that you can’t get a gift to help with a down-payment, I want to tell you with the proper procedure and paper work you can get it done. All you need to do is follow the rules.
Be aware that FHA, VA, USDA and Conventional mortgages all have different rules for gift funds and seller concessions to help off set your cash to close. Make sure you get the guidelines from your lender BEFORE you receive any type of funds.
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Let's change the way people shop for a mortgage…forever!
PS. To ask a question, get advice, or find out if you're getting the best deal possible on your loan, just post a comment below.