FAQ – What is the FHA Gift Funds Section 1010 Verbiage

FHA Underwriting Tip;

FHA allows a borrower to meet the minimum statutory investment by using gift funds from either a close family member, government agency or approved non profit.
FHA requires that all gift letters include the section 1010 verbiage below –
Click Here  for sample letter with all of the HUD requirements.

I/We fully understand that it is a Federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements when applying for this mortgage, as applicable under the provision of Title 18, United States Code,Section 1014 and Section 1010.

Ricardo Cobos is a Mortgage Loan Officer in Raleigh North Carolina, for expert advice on FHA loans and other types of low down payment and low interest mortgage loans call (919) 526-0183.


  1. […] A Description of Gift Finds; In order for funds to be considered a gift, there must be no expected or implied repayment of the funds to the donor by the borrower. To ensure there will be no future request for repayment HUD requires that the seller provide a letter attesting to the fact that it is in fact a bona-fide gift. Click here to download a sample copy. […]

  2. […] pay it back, it will have an effect on your ability to meet all your obligations. If it’s a gift and doesn’t have to be paid back, that’s fine. Whatever you do, don’t borrow it […]