FHA - GIFT LETTER - SOURCE OF FUNDS?
my sister send me money from overseas for closing coast she send it thru westerunion the lender need to know where money came from i give him the westerunion transaction showing her name and my name then they ask for gift letter to be sign i did that already then they ask for her bank account and bank statement although i have the money depsite on my bank for over than 2 month its too much to be ask for she live in dubai and not sure if she got bank account or not need advice thanks
- LandlordLv 71 decade agoFavorite Answer
You still have not identified the source of the funds, only how you received it. If she can not provide you with documentation you will not be allowed to use this money.
- Leo FLv 51 decade ago
They want to make sure this so called gift is not illegal money from overseas. This would fall under national security protection act with the FBI, that was formed after 911. You opened a big can of worms on this one. They will want to know the source of the money and proof that the Taliban has nothing to do with it. The taliban has contacts that buy homes in the USA and then take money out and send it back overseas.Source(s): Certified Appraiser
- golferwhoworksLv 71 decade ago
Standard course of action. She must prove that she did not borrow these funds gifted to you. So the lender is requiring a paper trail. If you cannot supply the paper trail then these funds must be in your account 2 full months before you can close
I am a mortgage banker in TN
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- Anonymous1 decade ago
If you can't supply what the lender is looking for, you won't get the loan. They are trying to ensure that you didn't borrow the money in any way, shape or form.
By the way, if the total is more than $100,000, you'll also need to file IRS form 3520.
- Anonymous1 decade ago
Mortgage underwriters are being very careful nowadays. They want to see a complete financial "audit trail" for any gift money. It is not "too much to ask for" if you want the loan.
- David ZLv 71 decade ago
just wait 2 months so that gift deposit does not show up in bank statements. 2 months of bank statements are required so once that deposit is no longer in those 2 months it will not be an issue.
it is unacceptable in my opinion to ask your sister for her bank statement. her financial records should not be viewed by your lender.
her gift letter indicates you do not have to repay so that should be good enough.