HUD gift letter requirements

We are trying to buy a house. Lender says that since I will be amending tax returns before closing and there will be a debt to the IRS of 7000, they want it paid in advance through a gift from parents. My stepdad agreed to do this gift, transferred the money from his line of credit into his checking, and the lender is saying that HE has to give me the money from his savings, investments, or home equity. He is willing to give the money, but the way he wants to do it is this line of credit that he's had and used off an on for the last 25 years when he has a large expense. Why does this matter where the money that I am being gifted comes from?

5 Answers

Relevance
  • Best Answer

    If it had already been in his account and had bank statements to that affect then it probably wouldn't be a problem. There are FHA practices and guidelines that are strict about sources of gift money. They must have proof (bank statement would be one) that the funds actually came from the person who is gifting them. Its a paper trail. If the Lender does not comply with FHA guidelines then they could be heavily penalized.

  • 1 decade ago

    FHA insures your loan. FHA does not loan you any money. You are dealing with a privately owned mortgage company. They can have any rules they want. They are interpreting the FHA guidelines in a way that makes sure there will be no misunderstandings about the source of the money. Another company might allow Stepdad to do what he wants. You would have to get a letter signed by the new company in advance. Otherwise, you could run into the same mess at the last minute. /

  • 3 years ago

    I have kept rather some issues from my ex's contained in the previous. and not in any respect simply by emotional cost yet purely to kep the memories. I hate forgetting quite some issues, and each and each and every image has it really is own particular memory gained with it. I dont frequently take pictures myself, so at the same time as someone provides me pictures of myself or my acquaintances, i decide on to keep them in a scrap e book, it really is were i keep quite some image, which in order that take position to ordinarily contain me and my exes. for sure you cant help yet keep some issues for emotional cost, yet thats not a foul aspect. even although a relationship is going undesirable, doesn;t recommend the memories ought to. There had to be something solid about the guy so as that you'll be able to be jointly contained in the first position. lol.

  • 1 decade ago

    They need a paper trail to prove the money is not illegal. Since you had to amend your return you do not exactly look like the honest type, on paper, which is all the decision makers see.

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    1. sumwon gotta send 7000$ tu IRS. IRS take cheks & munee orders.

    I spoze biz kan transfer bank-tu-bank.

    2. NE-1 kan send the munee tu IRS. If lender hav a hangup & insist borroer gotta send the munee, giv in & duit that wae.

Still have questions? Get your answers by asking now.