Monday, January 16, 2012

Donor for FHA gift funds?

Ok, we got the FHA loan. All we need to do is get the "gift letter" and the doents for proof of gifting. Now, we are concerned because my uncle, who is giving us the money, obtained a loan from his bank to give to us. We didn't know he borrowed the money until we got his bank statement, which the lender needs. I have read the FHA Guidelines and see that the donor can borrow the money as long as we have nothing to do with the loan, which we didn't because he never told us, and as long as it is not a party to the home buying transaction. Is it true then? Are we ok with my uncle gifting us the money even though he borrowed it from his bank? We don't have to pay it back or anything as he just wanted to help us get a home and we aren't listed on this loan at all. If my uncle can't give us the money, the only other option is to have a member of his church, my uncle is a pastor and the person is a family friend, gift us the money but we don't know which way to go.

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