fbpx

WHAT TO KNOW ABOUT DOWN PAYMENT GIFTS

September 17, 2020 | By Chuck

While it may seem silly, there are a few things to know if you are lucky enough to Give or Receive a House Down Payment this holiday season.

The number one thing you should know is Who Can Give a Down Payment Gift?
Because lending companies want to ensure that their loan recipients are able to repay loans. This means that there are requirements to ensure that a Down Payment Gift is a true gift and not a loan to another person or organization.Down Payment gifts cannot come from Sellers, Real estate agents or brokers, Home builders, or Anyone with a vested interest in selling the house.

For most loans, up to the full amount if the down payment may be gifted, but you should talk with your lending agent to be sure. The Gift Giver will also need to complete a Down Payment Gift Letter that explains the relationship between the gift giver and recipient and affirming that there are no expectations of repayment on this gift. This letter will need to be signed by both parties but does not need to be notarized.

There are certain instances where loan types or lenders may have additional requirements, so if you know that all or some of the down payment will be gift money, make sure to tell your lending agent from the start.

Posted in:

Featured Properties


Sorry we are experiencing system issues. Please try again.
View ALL
testimonials

what our customers say!

Sold our home in less than 3 weeks and above asking price. Will be using him again to sell our other home in the very near future. You wont be disappointed in selecting Chuck and his team, I recommend you start packing once you bring him on board.

Bob

Kyla helped me find my perfect home. She was helpful, knowledgeable, and most importantly, she listened to my wants and needs! We searched until we found my perfect home. She stayed on top of the inspections and mortgage broker requirements until closing day. I could not have chosen a better  partner for my home search. Thank you, Kyla! You are a rock star and I could not be happier.

Patricia

Chuck is just the best! So friendly, helpful and quite the funny guy 🙂 we loved him ?? and after all of our shenanigans, house to house to house to house……he was so patient and would even tell us if he thought we were in over our head. Sometimes we saw “a little fix here and there” but chuck  saw a headache! He’s not in it for a quick sale! That’s why, we’re going to buy another house! We purchased our house a little over a year ago but we’re ready to move on….I’ll be call you soon Chuck!

Jess & Colin

Words can never express how much I enjoyed and loved working with Kyla. For me, I never wanted to work with a realtor due to fears of them scamming me and just “talking a good game”. Kyla eased that fear the very first time we met. She was personable and she answered questions in a way that made  you actually answer your own questions in order for you to be the sole driver of the process while she copiloted and snatched the wheel when need be. Lol. She was available when needed most and very understanding when questions came up in the wee hours of the night. Would I recommend her, ABSOLUTELY!! Kyla thank you again for all that you’ve done for my family and I! YOU ROCK!

Kevin

Kyla was excellent. She was very kind & understanding. The closing on my home was a mess! Everything that could go wrong, did go wrong. Kayla sat with me the entire day at the closing office waiting for a wire transfer. She made a difficult day much easier for me. The purchase of my new home was  swift & easy bc of her. She also made sure that I won the bid on my new home with a secret she uses, as there were 5 offers!! I would highly recommend her to anyone buying or selling.

Debi

Chuck was everything you could ask for in a realtor – smart, responsive, thorough and genuinely kind and honest. After meeting with other realtors, we were so happy we went with Chuck. He really listened to us, gave us sage advice and made the selling process a breeze. Doesn’t get better than that!

Stacey

contact us

get in touch