Question Details

Maureen, Other/Just Looking in Florida

My daughter is securing a FHA loan. I gave her a monetary gift (small) and loan mgr wants letter with MY acct #,stating I had Suff funds to do OK??

Asked by Maureen, Florida Tue May 7, 2013

this letter must be on Bank of America letterhead and banker must write that I had sufficient funds to give this gift? Is this right??

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Answers

3
Yes, this is standard. Many times the lender wants a full bank statement.
0 votes Thank Flag Link Wed May 8, 2013
This is standard. If you didn't provide proof any other way of where the funds came from then definitely you'll need a letter. The bottom line is that they want to show you had the ability to give the gift in the first place. The way that it was suggested sounds like the easiest way if you have already given the funds and it's too late to provide anything different.
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This is our policy for FHA:

The best way to avoid the donors bank statement is to: 1) provide a copy of the canceled check or withdrawal document showing the withdrawal is from the donor's personal account, and 2) the homebuyer's/borrowers deposit slip or borrowers bank statement showing the deposit received or proof deposited directly to escrow. Note that the donor’s statement is not required and the funds must be in the borrowers account at the time of underwriting not at closing.

*Tip: The easiest way would be to have the donor wire or provide a cashier’s check for gift funds and directly deposit it into escrow. In addition if you can create a clear picture on the transferring of gift funds the easier this condition will be to address.
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Best of luck to you and your daughter!
Kim Lawson
Licensed Ohio Mortgage Loan Originator
** Licensing and contact information located in my profile.
0 votes Thank Flag Link Tue May 7, 2013
It is correct and customary. In order to gift funds to an FHA buyer, you as the Gift Donor are required to show source of funds or the ability to gift the money. I used to be able to show a letter from the Donor's bank, but now we are required to show a bank statement (all pages) with the amount of the gift amount in the account in the beginning date and at the cutoff date. In your case, the lender is not requiring this but a letter from your bank stating at the time the gift was made, you had the funds in your bank. Consider yourself lucky! Most lenders today are requiring a full bank statement documenting the ability of the Gift Donor to gift the funds. It's your choice, give the lender a bank statement or get a letter. Other than those two options, the gift funds will not be allowed. Hope this clears it up for you.

Best of Luck!
0 votes Thank Flag Link Tue May 7, 2013
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