Home Buying in 07005>Question Details

Ansh, Home Buyer in 07005

Do gift money needs bank statement of donor for Conv. loan? I have 5% own 5% getting gift money for DP. But Donor don't want to give his

Asked by Ansh, 07005 Thu Feb 16, 2012

statement. here is my information:
salary: 80K per year (same job for 3 years.)
my wife make 42K per year
Savings: 25K currently

Planning to buy home around 400K with Either 20K down or 50K down

I CAN get gift of 40K from my Father-IN-LAW too. He is happy to give gift and gift letter which says i don't need to repay him anything. but he may or may not give his bank statement.

He had 36K in his bank account from last 6 months. He is partner in a gas station which pays him lum sum of money every month or two. so he just got 25K CASH deposit in his bank account on Feb 1st.
so do you think this 25K cash deposit can create problem with my lender???

Also which loan would be better for me conventional loan or FHA?
I talked about this with 3 banks. Gave them full all detail about donor. Also told them ab 25K cash deposit in his account.
so there is what they said:
2 Bank Said They do NOT need statement of donor for Conv. loan - Only for FHA
1 Said Statement for ANY LOAN.
Which one is TRUTH?

Help the community by answering this question:

Answers

2
If you qualify for a conventional mortgage, that is always the best route to take. The rate is cheaper, there is no pmi or up front pmi that comes with all FHA loans. FHA may require the bank statements as well. Check with your lender, but if you have a gift, usually a letter is sufficient from the donar ( again, check with the lender). They may want to see the deposit in your account & a gift letter. If you have the credit scores to qualify, with 10% down, you should be able to get a conventional loan. Good luck & enjoy your new home!
0 votes Thank Flag Link Fri Feb 17, 2012
Everyone wants prove that the donor can give (or gave) the gift. If your father-in-law does not want to give a copy of his bank satement showing the money came out of his account, have him give you the money and hold it for 2 months seasoning before going to contract. In that case no gift letter or proof of gift coming out of his account.
0 votes Thank Flag Link Thu Feb 16, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer