down payment gifting

There is no conforming conventional loan product where they would allow the seller to gift the buyer the necessary funds for a down payment.. (Unless buyers are buying from Mom or Dad, then there could be a "gift of equity".. ) This was an area that was used / abused and was the source of a bunch of loan fraud deals.. So, no more!... Some might suggest Hard Money loans, but most HM lenders lend based on equity position and they always use the LOWER of the sale price or appraised value.. So if you purchase a $100K valued home at a discount to $50K.. And the lender requires 20% down.. The borrower will need to put 20% of $50K ($10K).. Be cautious of anyone saying they can do this.. The guidelines are very clear.. 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

Gifting of down payment from the seller to the buyer is prohibited unless the buyer and seller are related. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

No unfortunately not, FHA requires a min. of 3.5% from the borrower. They can receive a gift from a family member but no longer the seller.

Here is an option for you there is a program which we call gap funding for down payments for the same exact problem in which you are having.If your client has a 730 credit score across the board they can qualify for a line of credit loan up to 50k without proof of income and over 50k providing proof of income . The requirements are at least 5 trade lines three open dti around 35% no late payments or judgments ,or owe any child support or tax liens. If your client meets these requirements this may solve your problem.