Tag Archives: gift funds

What You Need To Know About Gift Funds

It’s no secret that the cost of real estate in San Francisco is high. Many first-time home buyers are turning to family—specifically, to their parents—for a little extra help. If you’re considering making a purchase that will partially rely on what are called “gift funds,” here’s what you need to know, courtesy of my colleague Gordon Friedman of Mortgage Service Professionals:

– The funds must be for a primary residence or second home (not for an investment property)
– The gift must be from a parent, relative, domestic partner, spouse or fiance
– A gift letter is required, which must state the gift amount, property address, date given/to be given, and donor address. The letter also must state that no repayment will be required
– Buyer must have 20% or more in down payment, though the entire down payment can be a gift
– If the buyer has less than 20% down, there will be a 5% borrower contribution required
– For a jumbo loan (more than $625,500), a 5% borrower contribution is required regardless of the down payment. Continue Reading

Lender Trends See Buyers Scratching Heads

The real estate lending landscape has changed significantly in the past couple years. Lenders are girding themselves against fraud in many ways, and that trickles down to what sort of documentation they’ll request from buyers in transactions.

Two areas that have raised questions recently center around gift money and personal information requests. Our team at Guarantee Mortgage recently presented an explanation about the issues related to these topics, so I thought I’d share this very practical information with you.Continue Reading

Get in touch:

Eileen Bermingham

Zephyr Real Estate

415.823.4656

ebermingham@zephyrsf.com

BRE# 01352627

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