Posted on: 14th Jun, 2011 12:12 am
Hello there! I'm planning to take out a mortgage. Few days back, my mom has gifted me a certain amount of money. Will I be able to use the gifted money as my mortgage down payment? One more query… will I have to report the gifted money to the IRS?
Hi Silvia,
As far as I know, you'll be able to use the gifted money as your mortgage down payment. But you will have to provide the lender with a gift letter written by your mother regarding the gifted money. You can get a link to a sample gift letter from the given page: http://www.mortgagefit.com/predeal/giftequity.html .
As far as reporting it to the IRS is concerned, you should contact a tax adviser or a CPA and take his opinion in this regard.
Thanks,
Jerry
As far as I know, you'll be able to use the gifted money as your mortgage down payment. But you will have to provide the lender with a gift letter written by your mother regarding the gifted money. You can get a link to a sample gift letter from the given page: http://www.mortgagefit.com/predeal/giftequity.html .
As far as reporting it to the IRS is concerned, you should contact a tax adviser or a CPA and take his opinion in this regard.
Thanks,
Jerry
Silvia,
You want to make sure that anytime you transfer or deposit money into a checking/savings account, that money, or gift needs to be sourced. Unless you are getting more than 25% of the funds to close as a gift. Lenders do not want to see deposits that cannot be sourced, meaning that if you deposited 10k and it was cash, you would not be able to prove where the money came from. Rule of thumb is to not deposit large amounts, no cash, dont change or quit job, dont have your credit run many times, and dont buy anything that would affect your credit. Good Luck on your purchase!!!
You want to make sure that anytime you transfer or deposit money into a checking/savings account, that money, or gift needs to be sourced. Unless you are getting more than 25% of the funds to close as a gift. Lenders do not want to see deposits that cannot be sourced, meaning that if you deposited 10k and it was cash, you would not be able to prove where the money came from. Rule of thumb is to not deposit large amounts, no cash, dont change or quit job, dont have your credit run many times, and dont buy anything that would affect your credit. Good Luck on your purchase!!!
