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Company Loan Type APR Est. Pmt.

non family member gift

Posted on: 01st Feb, 2011 09:09 pm
my daughter and boyfriend are purchasing a home. They qualified for conventional loan and daughters grandpa is gifting the 20% down. After they wrote up the offer, the lender called and stated that because of new guidelines there is no way to submit the offer sinds the grandfather is not related to the boyfriend. Is there any way around this...can they present a gift letter with a notarized letter stating they -grandfather and boyfriend-have known eachother for years. They have been neighbours and friends sinds the boyfriend was a little boy.Grandfather cannot put this money in boyfriends account, sinds the bank needs proof of it having been there for 60 days. They found the house they liked, and this glitch is messing everything up
is daughter not on the loan? if she is... not a problem.

also, most lenders do not realize that you can be 'unrelated' if there is a clear and documented interest in the giftee by the giftor. an example of how this is used, would be godparents have an interest in the person they want to gift.
Posted on: 01st Feb, 2011 09:55 pm
thanks for your reply tomburris.
my daughter currently does not have a job, and has no credit and therefore is not on the loan.
The 7 grand my daughter has saved is going towards closing costs etc etc, and yes they do plan to live together and eventually get married.
Her grandfather -giftor-has known lee for many years but are told there is no way to connect lee to crystal and therfore they cannot go foreward with this loan.
in documented interest...would some sort of notorized letter from the giftor to the giftee be enough.
We also thought about putting this money in lee's account however it needs to be in the account for 2 consecutive months, and they would lose the house if they had to wait this long.
we also thought about having them get engaged...lol! yes we are grasping at straws.
i am wondering in what document i could read the part about beeing unrelated with clear and documented interest...is this some government ruling or a basic mortgage rule the bankers abide by

Thanks again for your help
Posted on: 02nd Feb, 2011 06:42 pm
have they lived together before? are they with child?

the specific language is spelled out in the hud 4155 manual

there are copies on the internet.

maybe putting her on title at closing will ease the underwriter's fears?

in cases like this.... the loan officer and underwriter need to have a little pow wow.
Posted on: 02nd Feb, 2011 06:59 pm
http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.5.B.4.b

the above was from me
Posted on: 02nd Feb, 2011 07:05 pm
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