Family, Employers, and even non-profits can possibly help you with a down payment to qualify for a mortgage! This is nothing new. Family, friends, and communities have been helping each other for a long time. What is relatively new are the requirements for giving a down payment for a mortgage. In fact, if you don’t follow these strict guidelines, you could cause yourself a lot of headaches or even lose financing during the underwriting process. 

Here is what you need to do if you are planning on gifting funds:

#1 - We will need a gift letter. Don't worry; Chissell Mortgage will provide the gift letter format to you when you need it. This gift letter will have pertinent information to the lender such as the gifter name, account information the funds are coming from, the amount of the funds, and the date of transfer. This information will provide the underwriter what they need to satisfy the anti-money laundering, anti-fraud and Patriot Act hoops they need to jump through. 

#2 - Do not move the money! The easiest way to shoot yourself in the foot is to move money around during the transaction. At best, you get to wait three months to provide clean bank statements that do not show a large deposit. At worst, the transaction is dead, and you can lose your earnest money deposit (EMD) to boot. Very important not to move money! Leave the money in the donor’s account until your mortgage broker gives the donor instructions. In general, the donor will transfer the funds to the title company shortly before closing. 

#3 - Do not move the money! See Rule #2. 

#4 - If you move the money, we may have ways to potentially help remedy the situation. However, to find out if we can help the situation, we’ll need to speak to you over the phone. 

Contact Chissell Mortgage today to discuss your mortgage payment options, (727) 376-6900.

NMLS ID: 327290; NMLS ID: 2062741

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