If you’re using gifted funds for either all or part of your down payment, you’ll need a letter from your donor that clearly states the funds are a gift. Seek the advice of your mortgage professional for the necessary information needed in the letter. If you are looking for an FHA loan, the person who gives you the funds will be required to provide a bank statement in addition to a the letter. If you have 20% of the purchase price of the home it can all be gifted funds. If you are putting less than 20%, a percentage of the downpayment can be from gifted funds, but not all. The amount varies for the different loan options. For FHA and VA loans, all of your down payment can be from a gift. However, there are certain credit score requirements that might require a percentage of the down payment to come directly from your own savings.Still have questions? Ask Us.
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