Mortgage experts: Do people who give gifts toward closing costs HAVE to also supply bank statements to lender?

I'm being told by my loan officer that FHA requires bank statements of ANYBODY who gives me money toward closing costs. I have always been advised that a gift letter was required, or even a canceled check. I can live with these things. But bank statements of anybody who gives me money...even for Christmas?? That seems a bit ridiculous and invasive.

Please help me out because I am about $1000 short for my closing costs and I REALLY do not want my parents or siblings to have to all provide bank statements to my lender! Is this lender too harsh, or is this the times we live in? My FICO is 701

3 Answers

Relevance
  • Lilli
    Lv 7
    1 decade ago
    Best Answer

    That doesn't make any sense to me, but FHA is very different than anyone else. Ask your loan officer to see where in the policy/contract it says that.

  • Anonymous
    1 decade ago

    that is probably just an FHA requirement - I just bought an investment property and had $2500 of the closing costs given to me by a friend close to closing - lender did not even require a letter from the friend staing it was a gift

  • 4 years ago

    Yeah its a pain in the butt but the lender requires a paper trail to "source" the funds. Listen people have been scamming banks for years and along the way banks figured it out. They have to make sure that you didn't take out a loan to pay for your down payment and closing costs and then give that money to a family member to give it back to you. Kind of sounds like money laundering huh?

Still have questions? Get your answers by asking now.