QUESTION:Are you planning to buy a home, and
short on cash?
It might be to your advantage if you read up on the subject. Listed below
are some helpful pointers on cash gifts for down payments. The specifics vary
from between programs.
GIFT FUNDS must come from family members, a church, municipality,
or non-profit agency.
GIFT LETTERS must include the amount, purpose of the gift,
and grantor signature.
VERIFICATION of the gift fund transfer requires documentation.
GRANTOR must not require repayment of the
DOWN PAYMENT buyers must have at least 5% of their own funds.
CLOSING COSTS pre-paid items, like interest and taxes may
be a gift.
GIFT VERIFICATION is required.
GIFT FUNDS may come from any person, regardless of relationship.
DOWN PAYMENT & CLOSING COSTS may be a gift, regardless
of percentage down.
GIFTS of entire down payment are allowed regardless of percentage.
GIFT LETTER & FUND VERIFICATION is required.
GIFT ORIGINATION may be from a family member, employer,
labor union, charitable organization, government agency, housing assistance program,
or a close friend who has a significant interest in the buyer.
Many communities have special funding to help first time buyers, and those have
not owned in three years or more. Funding ranges from down-payment aid, tax relief,
tax credits, below market interest rates, and grants. Contact any city hall for
information on special funding availability.