{"id":2385,"date":"2017-03-22T20:14:34","date_gmt":"2017-03-22T20:14:34","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/making-your-down-payment-with-gift-money\/"},"modified":"2017-03-22T20:14:34","modified_gmt":"2017-03-22T20:14:34","slug":"making-your-down-payment-with-gift-money","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/making-your-down-payment-with-gift-money\/","title":{"rendered":"Making Your Down Payment With Gift Money"},"content":{"rendered":"

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To take advantage of low interest rates while home prices climb higher and higher, some homebuyers need help accumulating enough money for a down-payment. To satisfy secondary market loan package purchasers such as Fannie Mae and Freddie Mac and insurers like the Federal Housing<\/a> Authority, lenders<\/a> have strict rules about where down-payment money originates.<\/p>\n

Lenders prefer that borrowers supply their own down-payment funds<\/a>. It shows they have “skin in the game” and that they are good with money and can meet their financial goals. However, many homebuyers are turning to their parents, grandparents and other family or friends for help.\n\t\t\t\t<\/p>\n

Research in from loanDepot LLC, found that more parents are planning on helping their Millennial-age kids buy homes. In the last five years, 13 percent of parents pitched in with down payments, covering closing costs, or co-signing the loan<\/a> but lenders anticipate that fully 17 percent of parents will help their kids.<\/p>\n

Because gifts are a gray area, lenders are requiring more documentation for down payment monies. For example, a parent may provide a few thousand dollars to an adult child to use as a down payment — but is the money a gift or a loan? Lenders may require borrowers and gift-givers to provide a certified down-payment gift letter or to sign an affidavit.<\/p>\n

Such affidavits must include:<\/p>\n