Did you know that there are specific guidelines regarding gift funds from live-in family members? It’s true! When an individual who qualifies as an acceptable donor gives a borrower a gift but has been living with them for the past 12 months, it is not considered a gift under certain guidelines.
This rule applies to donors who share the same residence as the borrower and will continue to live with them in the subject property. This could include a spouse, domestic partner, or any live-in family member. The donor must document their shared residence to ensure compliance with certain requirements.
Gift funds are something that is used in plenty of cases. Keep in mind that a gift can only come from a direct relative; friends and co-workers do not qualify as gift donors.
Our experienced team of licensed mortgage loan originators is here to guide you through the process of applying for and closing your loan, ensuring that you have the support you need to make informed decisions.
Contact us and get pre-approved for a loan; we are experienced with borrowers receiving gift funds for the down payment and closing costs. We’ll guide you in the right direction.