You will find that what your loan officer is requesting is an industry standard. Bank statements will be required from your father or the gift may not be used. You will need to supply the statements prior to your loan approval.
Steven J. Pahl
Your lender should have a gift form letter that they use to give to you. Typically the top portion states the amount of the gift, the relationship between you and the donor and that the gift does not have to be paid back. The bottom half is filled by your father's bank stating which account the funds came from and nothing more.
Along with that, you'll need to provide your lender with a copy of the certified check and just bring the actual one to the closing table. Mind you: if you deposit the check into your account, you'll need to provide your lender with an updated bank statement refecting the deposit. Depending on how soon your closing, to save time and paperwork, make the certified check out to you and just bring it to the close.
Thinking about the gift, Last time I checked, the IRS allows something like $11,000 gift per person per year without tax consequence. So depending on the amount of the gift, you may owe Uncle Sam taxes on some of it. I would highly recommend checking that with a quick phone call to your accountant, and if you don't have one, get one. There are ways to massage that such as if you are married, your dad could gift up to the max to you, and again to your wife. If your father is married, he and his wife could each gift you the max, each year. Just something extra to think about.
Banks need to see a copy of the donor's bank statement. It is a banking guideline-it's not asking too much, your lender is only asking to play by the rules.
Most underwriters do not care if the money was in the donor's account for a day or a week or a month-it's not the same a verifying your own funds which have to be seasoned. They don't care where your father is getting the money from. They only care about where you're getting your funds.
If your father is the private type and doesn't want anybody to see his account, ask your lender if it is ok for him to open a new checking account in his name so he can deposit your 20% deposit there. This way it won't be an intrusion on your father's privacy.
I hope this helps.
Lenders want to see that he was able to give you the money and not have to repay it. If he is using a bank account, then just the front page is usually good. If a Line of Credit is used, then again just the front page.
Suarez Home & Finance Corp.