April 6, 2011
Q&A: What if I use gift funds as a down payment?
Zoocasa’s Ask the Pros section is where Zoocasa Users can post their real estate queries in a moderated forum and get replies from real estate professionals! This weekly Q&A featured response was a from a recent Real Post. For more answers to this week’s question from other agents, please visit the original post via the link below.
Question of the Week: Do I need any sort of documents if I plan to use gift funds as a down payment?
If you are planning to use gift funds for your down payment, you will need a “Gift Letter”. Typically the lender will require a letter outlining the amount of the gift and who it’s coming from.
However, some lenders want more than just a letter. You may need to show proof that the gifted funds have been in a bank account for a minimum 15 days through either a bank signed statement from your bank or trust company, or copies of your bank statements.