How to Document FHA Gift Funds

How to Document FHA Gift Funds

When it comes to receiving gift funds for non-conventional loans, there are certain requirements you need to be aware of and restrictions that are placed on the donor.

First, full account ownership of the donor must be documented and the donor’s ability to gift the money must be verified. A full bank statement from your donor must be provided, showing their name, address, account number, and their account balances before and after the gifts funds are taken out.

There are a variety of ways the donor can transfer you the funds in this scenario, but if the money is being transferred to you directly, then we need to document your receipt of that money with an updated transaction history.

“There are a variety of ways the donor can transfer you the funds in this scenario.”

Lastly, if the donor has large deposits on the monthly statement that they provide, they have to document where that money came from, as stated in the Patriot Act.

If you have any other questions about the requirements of gift funds for non-conventional loans or you have any other questions, please feel free to reach out to us. We would be more than happy to help you.

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    Rob Spring
    The Spring Mortgage Team
    Hometrust Mortgage
    204 S. Kentucky Street McKinney, TX 75069