Posted on: 19th Feb, 2011 02:17 am
I'm in the process of trying to buy a HUD home with FHA financing. I just got notice that my loan was approved with some conditions. There were only a handful of conditions, and they seemed reasonable, except for one. The underwriter is asking that I get a gift of $5000 from a relative and have it wired to the title company? They want the relative to fill out a paper documenting the source of the money and everything. This is 8% of the purchase price, on top of the 3.5% down that I am already paying, the 3% of the purchase price that HUD is paying toward closing, and my additional closing fees. Why on earth would they ask for such a thing?
No Idea - that is strange - If you have enough for the down payment and closing costs they may be asking to show reserves - however FHA does not require reserves so this is suspect - I would ask for an exact reason for this - make sure they arent going to try and get that money in their pocket?
Good Luck
Brian
Good Luck
Brian
Thanks for the response. I think it has something to do with seasoning. I'm a full time student and some student loan money hit the bank about 3 weeks before I made my earnest deposit. The underwriter is claiming I used my student loan money to make the deposit, but this is not the case. It can clearly be seen in my account history that more than the balance of my student loan went to Amazon (books) and Walmart (a new computer) within days of the student loan coming in, and weeks before I made the earnest deposit. Between those two periods I received an additional $2300 in wages, which is where my earnest money came from. I sent a letter explaining that, so hopefully it will be sufficient. Most of my down payment is coming from my tax refund, which I believe does not have to be seasoned.
Hopefully your letter will take care of things
That makes a little more sense -
Good Luck
That makes a little more sense -
Good Luck