I planning to buy a house on my name. I have 6%-20K of funds for the downpayment which I will use and my wife will gift me /give me 3%-10K on the down

Asked by Sasilively, Wed Aug 8, 2012

which is in her bank . But can my wife gift me another $10K for downpayment on FHA or Conventional loan- if this 10K gift is given to her from her own sister who is also married?

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12
, ,
Mon Jan 21, 2013
John,

I totally see where you're coming from though from FHA's perspective, 3-4 units are much higher risk loans which is why they want to see the reserves on top of being able to prove the property is self-sufficient. Foreclosure rates on 3-4 unit properties are significantly higher than single family residences. With the rate of unemployment in the country (not so much now as a couple years ago), the chances a paying renter could become a non-paying renter goes up a lot and if you get two in the same rental building (assuming 3-4 units), I can easily see the owner put into a financial crisis.

On the bright side, they still allow us to fund and close these! :)
Web Reference:  http://RobWeber.com
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John Walin, Agent, Libertyville, IL
Sun Jan 20, 2013
Great specific answer Rob! I still cant believe, or more precisely, wish it wasnt so if someone needs a gift from a spouse, who got that money from a sister,means they dont have cash reserves, and they can get a FHA 3% down loan using gift money. This seems like a shell game, and surprised current strict underwriting nowadays would go along with the scenario as described.
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, ,
Fri Jan 18, 2013
This post is a bit old but a side note ALL (assuming it's a 1-2 unit, 3-4 units require a minimum of three months of reserves of your own funds) of the money to close on your FHA loan could come from your wife or close relative, that's not a problem. On the conventional side you'll need to have some of your own funds (depending what you want to do/product, that could be 3-5%) .

To confirm what someone else had already said, your wife's credit has nothing to do with her ability to gift/use her funds to help you close on your future home.
Web Reference:  http://RobWeber.com
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Riccardo War…, Agent, Bolingbrook, IL
Tue Jan 15, 2013
Yes you can get money from your wife's sister as long as the money doesn't have to be paid back. Give me a call and I can get you prequalified in a couple of hours.

Sean Cochran
Quality Mortgage Lending
630-330-2229
http://www.qmlending.com
0 votes
John Walin, Agent, Libertyville, IL
Tue Jan 15, 2013
How did your scenario work out for you??
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Peter Schif…, , Northbrook, IL
Wed Aug 8, 2012
John,
I am in mortgage business for many years... Rules got much more strict since as compared to 4-5 years ago, but no one can force a person apply jointly with a spouse if he qualifies with his income and credit alone.
The spouse can still be on the purchase contract as a buyer and STILL gift the money to the husband. It sounds absurd, but this is how underwriting will look at wife's funds if the money is coming from spouse's personal account. If it's a joint account - she'd only have to sign access letter and no gift letter will be required.

Feel free to call me with your difficult mortgage scenarios and I'll be more than happy to help you with these!
Thanks
Peter
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John Walin, Agent, Libertyville, IL
Wed Aug 8, 2012
Ok so a spouse with assumingly bad credit who cannot be on the loan can gift the other spouse money for down payment and that is cool with underwriting??? Wow that is good to know. thanks for setting me straight Pete. So if a spouse had a BK 2 years ago and cant be on the current paper, that spouse can provide gift money to buy the house through the other spouse. That's great! FHA rules are really flexible and open to interpretation too, so having a good sympathetic mortgage broker like Pete will make all the difference.
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Peter Schif…, , Northbrook, IL
Wed Aug 8, 2012
John,
With all the respect - please do not address questions that are not your area of expertise. Your reply is not correct and is misleading the buyer.
Buying a house without wife's credit is NOT a problem and a gift from wife is NOT a problem. If the wife is not on the loan file - her credit won't be used. I have just closed a loan for a buyer who reached out to me through this forum and his scenario was very similar to Sasilively's.

Sasilively,
Find an experienced mortgage professional that you will trust to answer your financing questions and let the realtor find a house you qualify for once you have a loan preapproval in your pocket.

Thanks
Peter Schifrin
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John Walin, Agent, Libertyville, IL
Wed Aug 8, 2012
No offense, but why would your wife need to gift you money to buy a house? Illinois is a common property state. The banks would want a paper trail of the money and check it thoroughly in your recent bank statements. If you are trying to buy a house without your wife's credit, that could be a problem. I have seen where one spouse has better credit than the other and so to qualify only use the "good" credit of one of the spouses. If a spouse went through BK before a recent marriage I think the bank will insist on using that lower spouse credit score. The banks really scrub a file
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Randy Schule…, Agent, Saint Charles, IL
Wed Aug 8, 2012
Sasilively,

If you need a real estate agent to help you with negotiating your purchase call me at 224-805-2616. I'd be glad to help as I am in the Port Barrington area a couple times a month looking at homes. I'd also be happy to connect you to a few lender contacts that I know do a great job and can pre-approve you for the purchase. Get your 'Mortgage 1st' and then work on the 'Realty' part next.


Randy Schulenburg
Real Estate Managing Broker for,
Mortgage 1st Realty, Inc.
224-805-2616 Direct

http://www.ActiveRain.com/mmortgage - #1 Agent in McHenry County
0 votes
Peter Schif…, , Northbrook, IL
Wed Aug 8, 2012
Sasilively,
You are allowed to get a gift from a close relative on a purchase. Please call or email me privately to discuss your financing options and get prequalified for a mortgage. (free of charge)

Best,
Peter Schifrin
VP of Mortgage Lending
Guaranteed Rate, Inc.
ph. 847 630 6843
peter.schifrin@guaranteedrate.com
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Ron Thomas, Agent, Fresno, CA
Wed Aug 8, 2012
The Lenders, (and the government) are just looking for a paper trail:
You can probably get 10 "gifts", but they will be scrutenized and you'll have to have Gift-Letter.

Good luck and may God bless
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