How can you define or document a close friend's interest in the borrower regarding a gift?

First, you should make sure your selected lender and loan program will allow a gift and then ask them directly about your question. Hearing from professionals on this site will only provide you with options we may have with our lenders and loan programs. Making sure you dot your I's and cross your T's is my best advice. If you need direct help, I'm here! Enjoy the evening!

If your accepting "Gifted Funds" from a lifelong friend, then most lenders will accept a Letter of Explanation.. Others might require other documentation or proof.. (I had an underwriter ask for an old photo).. but usually a letter will suffice.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

I assume you mean a gift for down payment on a loan? That would depend on the relationship to the borrower. Ie if its a blood relationship or by marriage or simply a godfather etc.... basically your goal is to prove to a third party how youre related, beyond a letter written by you or the close friend.

If they are not a relative, there are some options: prove they live with you through joint bank accounts, copy of lease, their drivers license, etc. Options don't help unless we know the actual situation

HelloYou would get a gift letter and then would have to have supporting documentation from the bank or the source of where the funds are coming from.I am a Tennessee lender and if the property is in Tennessee, please call me at 615-335-7301 and I would be glad to assist you.ThanksSteve

A gift letter will be required.

If you are planning on using money as a gift from a friend for your down payment, you should be prepared to provide a signed gift letter (signed by both parties) that explains that the money is a gift and does not need to be paid back and the exact amount of the gift. You will also need to provide an exact paper trail showing the money getting transferred from your friend's account to your account, which must be the exact amount of money that was stated in the gift letter.

If I were handling your loan I would try to document that your friend was making the payments previously and have a well written letter of explanation signed by them as well. I believe that would work with my underwriters. If you can't get it approved contact me and I'll be happy to try for you - I do lend in Tennessee.

I'm in Charleston, SC and most of my business is local, but I can lend in most states and handled a loan in Nashville area not long ago. PrimeLending is a national company (roughly #12 in rankings) with about 250 offices around the country. Click on my name for more info

ps. What kind of mortgage are they trying to do? FHA/VA/Conventional? there are other issues that could make a lender more concerned about this documentation. pdumouchel@primelending.com or direct 843.619.6025