Home Buying in San Fernando>Question Details

Larry, Home Buyer in California

My wife and I have recently been promised by my Mothers Sister to help us with a large down payment so we can

Asked by Larry, California Thu Apr 10, 2008

get into a better home then our current finanical status would allow( down payment wise). We have been pre-approved, but the amount of the down payment assitance will be 250,000 to 350,000. While I am 100% confident that the money will be made available, I can not, for the life of me get my Aunt to put this money in an account with my Name, If I get her to at least get a Proof of Funds letter from her Bank, along with a statement that the money will be made available during escow, is that enough ? We are looking at Hones in the 550,000 to 650,000. With their help, that will bring the Mortgage down to 300,000 which we can afford

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You should talk to a reputable lender i.e. mortgage broker and your Realtor, because I'm sure they would find a way to structure the purchase agreement contract and the mortgage financing in a way that will let you close your transaction, there are so many lenders and lending programs that I'm confident that you will be able with your Agent and mortgage broker's help find the right one to accommodate your particular situation. Since you don't give much details about the type of loan program you are getting is kind of hard to see how to do the financing in your particular situation without knowing the details. Once you come up with a 40% to a 50% CTLV I don't see how not find a way to structure the whole transaction if you are so confident on your aunt's help. Feel free to ask me any question you may have.
0 votes Thank Flag Link Fri Apr 11, 2008
Dear Larry,

I would certainly sit down with my aunt to discuss the situation. In order to have this gift, you will most definitely need proof of funds from your aunt's bank. No one can do this but the account holder (your aunt). This is why I believe sitting down and having a heart to heart with her is a good idea. Then I suggest you get preapproved by a bank and let them draft a letter stating that you will need this documentation in order to show your source of downpayment. With all of this spelled out and in writing, if your aunt is still hesitant to "show you the money" then I would wonder if she truly does intend to follow through.

While I know that it's hard sometimes to reach family members when it comes to money issues, this is an instance where you really do need to know and have documentation of where you stand.

Hope this was helpful to you.

Good luck!
Maggie
0 votes Thank Flag Link Fri Apr 11, 2008
you will have to ask your lender if this will work,
good luck
agent - Leanne Smith
0 votes Thank Flag Link Fri Apr 11, 2008
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