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Gift vs. loan

Posted on: 30th Jul, 2009 10:17 am
I want to give my daughetr $7000 towards the purchase of a home. her mortgage officer wants a family gift letter instead. Says it's quicker and doesn't need as much documentation. What's the right thing?
you noted it will be a gift and that a gift letter is required. that ought to be sufficient to do what you wish. i'm not quite sure how this loan officer distinguishes a "family gift letter" from just a plain old gift letter, but that ought not to present any difficulty.

is it that you are trying to lend the funds to your daughter, or is it truly a gift?
Posted on: 30th Jul, 2009 10:26 am
Sorry, what I meant to post was that the mortgage officer wants a family LOAN letter instead of gift letter. She says it's quicker doesn't need the documentation a gift does.....
Posted on: 30th Jul, 2009 10:31 am
that makes sense.
Posted on: 30th Jul, 2009 11:18 am
I never heard of a family loan letter. Maybe something new????

Generally, unsecured loans are not permitted. If it is a loan, the monthly payment probabaly needs to be added to the debt ratio calculation.

Whichever is easier is probabaly in the eye of the beholder. To me a gift letter is easy.
Posted on: 30th Jul, 2009 02:28 pm
john, i havent had occasion to check fha guidelines lately concerning family (unsecured) loans, but i do recall having seen it as an eligible source of funds.
Posted on: 31st Jul, 2009 07:38 am
George,
As usual, you are undoubtedly correct.
Posted on: 31st Jul, 2009 07:53 am
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