FHA loan gift funds and domestic partnership

Asked by Mike, Long Beach, CA Tue Apr 24, 2012

in CA, if a borrower has a domestic partner living with him, but 1) they are not REGISTERED domestic partners and 2) domestic partner will NOT be on loan or title, can borrower accept gift from domestic partner for down payment?

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Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Tue Apr 24, 2012

Specifically, FHA guides will permit gifts from the following:

• the borrower's relative

• the borrower’s employer or labor union

• a close friend with a clearly defined and documented interest in the borrower

• a charitable organization

• a governmental agency or public entity that has a program providing home ownership assistance to

– low- and moderate-income families, or

– first-time homebuyers.

Documenting your unregistered domestic partnership with a brief letter will likely suffice in your case and I would think you'd be fine from there.

Best of luck and let me know if I can help.

Rob Spinosa
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Gene Scott, Agent, Long Beach, CA
Tue Apr 24, 2012
Yes gift funds are OK. Does not have to be a family member. Alternatively, depending on how much you make, you may be able to obtain a California Homebuyer's Downpayment Assistance Program loan, which can reduce the amount of money you need to qualify from 3.5% down to 1.0% or even 0.5%. Then you will not need as much of a gift to qualify for a loan.

We do a lot of FHA loans, so if you need to discuss further, feel free to give me a call or drop me an email.

Good luck to you.

Gene Scott
Loan Officer and Realtor
ERA Buy America Real Estate Services
Web Reference:  http://genescott.m1m4you.com
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Emily Knell, Agent, Huntington Beach, CA
Tue Apr 24, 2012
Yes & domestic partnership doesn't matter.

With FHA you can receive gift funds for down payment from ANYONE, friend, family member, domestic partner, maybe even your cat if he or she has a bank account, I'm not exactly sure if it's limited to human donation.

It's OK if the donor of the funds is not on title or on the loan in the end.

Shoot me an email directly if you'd like to talk to me some more. I don't look back on this same Trulia thread for answers posted after mine.

562-430-3053 c
Realtor Since 1996
Main Street Realtor
Short Sale Expert & I can PROVE IT !
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