When are Gift Funds Allowed?

Contrary to many schools of thought there are still mortgage loan programs which permit the use of gifted funds for some or even all of a borrower’s down payment. In this post, we will focus on FHA loans specifically. Although there are many more requirements, this post is intended to focus only on the highlights…

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.