Today I want to talk about gift funds. I am asked frequently from my clients about gifts funds or if there’s a way I can help a family member buy a home. I have the expert here today with me, Lee Hunt with Motto Mortgage, to talk about how you can help a nephew, a daughter, or somebody buy a home but not have to be on the mortgage.
Gift funds are a great way for family members, close friends to give you funds for your down payment and closing costs towards your new purchase. There’s very specific guidelines as to receiving gift funds, so we have to document those. It’s best not to do that ahead of time until you talk to us and then we can guide you through that process.
Is there a dollar amount that the donor is limited to giving?
There is no dollar amount that you’re limited to receive. The IRS does say that you can receive so much in gift funds or the donor can give so much per year, but we don’t get into that advice. You can consult your tax advisor for that.
Who can receive gift funds?
Anyone going FHA, VA and Conventional plus they don’t have to be a first time home buyer.
If you have any more questions about gift funds, please contact Lee or myself and we can help you take the smoother road to sold.
Motto Mortgage Simplified
Senior Loan Originator
NMLS # 661880