WHAT are the requirements of Gift Funds?
Gift funds can be used in many loan scenarios. However, there are times when they cannot be used. If gift funds can be used, there are three main requirements to use these funds:
- No Cash Allowed: Funds cannot be in the form of cash.
- Funds Must Be Sourced: Proof of funds must be provided from the donor – usually through a bank statement or Verification of Deposit.
- Gift Letter: The gifter must fill out and sign stating that this is a gift, and funds will not be required to pay back by the borrower(s).
WHEN do I need to provide documentation?
A gift letter will be given to you during the application process. It is a good idea to get documentation as soon as you can. Our team will review to make sure everything is in order.
HOW do I get the gift funds from the gifter?
Stop! There are very specific rules on how we must document gift funds, and the documentation that we will need. We will work with you on the best option to receive these funds, or provide specifics when it is time to wire funds directly to the title company.
P: (652) 451-2273
P: (651) 398-3477