Loan rates are great, but it's still hard to qualify for a loan. If you're fortunate enough to get a cash gift for a down payment on a home, things look much better.
Amy Hoak at MarketWatch.com explains that you have to be careful when using gift money for a down payment. Lenders are still concerned about losing money, and a little cash on hand isn't always enough to calm their fears. For example, you may need to pony up a portion of the down payment yourself -- just to show that you've got some skin in the game.
Be prepared to document the source of your gift. Sudden, large deposits don't just land in your bank account every day. Lenders don't know where it came from; it could be a loan that you'll have to repay for all they know. Ask your lender what they need to prove that the money is yours for good.
It's possible (and helpful) to use loan money for your down payment -- just make sure to communicate with your lender so the gift doesn't create problems.
No comments:
Post a Comment