One of the unique aspects of our approach is how we handle pooled funds, especially when it comes to family members living together.
Pooled Funds: Not Considered a Gift
Did you know that at MortgageDepot, we do not consider pooled funds as a gift? This can be a significant advantage for borrowers who reside with family members. When family members live together and plan to continue living together after the closing, the funds they pool together are not treated as a gift. This can simplify the financial documentation process and potentially make it easier for you to qualify for a mortgage.
Documentation Requirements
To ensure clarity and compliance, we do require specific documentation. Here’s what you need to provide:
Proof of Residency: Documentation confirming that all family members or related persons have been living with the borrower for at least 12 months. This could include utility bills, lease agreements, or other official documents that establish residency.
Letter of Continuation: A letter confirming that these family members will continue to live with the borrower in the subject property after closing. This letter does not need to be notarized, which simplifies the process further.
Understanding how pooled funds are treated can significantly impact your mortgage application. By not considering these funds as a gift, MortgageDepot allows for a more flexible and realistic assessment of your financial situation. This approach can be particularly beneficial for multi-generational households or families who have chosen to live together for economic or personal reasons.
Contact our office for more information about gift funds.