If anyone has experience with FHA gifting for down payment on home please answer?

We are currently applying for a FHA home loan. We are only having my husband apply for the loan for two reasons. 1. I have a student loan under my name which would only add more debt to our debt ratio if I were to be on the loan. 2. My source of income isn't really income as it is technically a "gift" from my parents. So my question is I would like to gift my money that I receive from my parents to my husband to use towards our down payment and I am wondering if that is ok to do. I receive about 350 dollars per week from my step mom and dad which comes to about 1400 dollars a month. That is above the 13000$ gift limit for one person per year but it comes out to about 8000 $ or so per parent per year if you count both of them as individuals and as both of there names are on the checks i receive so I legally do not have to pay taxes on this gift. So if I deposit the money from my parents into my own account can I gift that money to my husband to use toward our down payment and if I deposit that money into our joint account does that change anything or make it harder to use or need more documentation. I have never had experience with FHA loan before and I know they are very careful and have a lot of regulations so this is what I am wondering. If anyone has experience with the matter I would love to know. Thanks so much for your help!

Update:

Experience with fha loans only please. and also 100% of the down payment can be a gift when getting an fha loan i am wondering if i am gifting gifted money if thats ok

2 Answers

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  • 9 years ago

    It's the giver who is responsible for paying gift tax.

    It's doubtful that the lender would allow 100% of the downpayment from a gift. Since an FHA downpayment is only 3.5%, I would guess that none of it can be from a gift.

    If your husband is the only one on the loan, typically that would mean that he is the only one on the deed. No one in their right might would be 100% of the loan but give away 1/2 the house. Since you are not on the deed, why would you consider giving the downpayment.

    Source(s): Common sense.
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  • 9 years ago
    Source(s): The second one sounds like you could not do this in the manner YOU want to do it. As in YOU cannot do the gifting since you are going to be living in the house and you do have an interest in the house. It seems to be, that the parents would have to do the gifting, not you. Just be sure, this money has to be *seasoned*, meaning, it has to be in an account for a specific period of time to show you aren't trying to pull a fast one.
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