This website has a blog entitled, " How To Accept A Home Downpayment Gift From Family That Won't Get Rejected In Underwriting." The author opens with the question/statement, " Accepting a gift to buy a home? Make sure [to] do it properly." He warns that if accepting a down payment gift is part of the home-planning financial strategy, to be aware that there is a right way and a wrong way to accept
. a gift. Just depositing a parent's gift money into a bank account is not the correct way to go about it. There are a set of rules that musts be followed exactly. There are three steps to this process. The suggestion is made to first obtain a certified down payment gift letter from the source giving the gift. To read the rest of the steps please visit: http://themortgagereports.com/2669/downpayment-gifts-from-family.This website tells how to verify a down payment. The lender will supply a form called a " gift letter." In the gift letter, it states the relationship between the parties, the address of the purchased property, the amount of the gift, and sometimes the source of the funds used to make the gift. The gift letter also states that the funds are a gift and are not required to be paid back. The borrower and the person providing the gift will sign the letter. Some banks require the donor to provide evidence that they have the ability to make the gift. This can be in the form of a bank or stock statement showing they have the funds available. Copies should be made of all documents, including the check or money order used for the down payment and all deposit slips, too. For more information see: http://www.realestateabc.com/loanguide/assets4.htm.This website talks about the other side of down payments "" being the giver of the gift. Here is an article called " Giving the Gift of a Down Payment" by Lisa Sherzer. She talks about how the gift can be a tax advantage. The article states that Troy Von Haefen, a certified financial planner and president of Von Haefen Financial Management in Nashville, Tennessee, says the IRS allows parents to give up to $13,000 annually to their child (or anyone else) without incurring a gift tax. This is important for people buying homes, as it raises the possibility for gifts to be given. For more information about this please go to this website: http://www.smartmoney.com/spend/real-estate/giving-the-gift-of-a-down-payment. More reference links: http://themortgagereports.com/2669/downpayment-gifts-from-family http://www.smartmoney.com/spend/real-estate/giving-the-gift-of-a-down-payment
