Posted on: 13th Apr, 2010 06:57 pm
my lender told me today that gifting is not looked upon favorably in refinance loans. is this true? my house was appraised $40k lower than it needed to be and my mom wants to give my husband and the $40k as a gift. for some reason this is giving my lender pause (as in we may not be approved). does this make sense? why do they have a problem with this gift?
If you're paying down the mortgage $40k then you should not have so much of an issue. Pay it down prior to closing and you should have no issues pending you've always paid on time.
the property appraised for 483k, the loan is for 414k. We need to pay the current loan down by 33k in order to meet the LTV. BUT the underwriter is saying if there is a sudden, mysterious payment of $33-40k, they will question it and they may not approve the loan, because they don't like to see a gift of that size. Yes, payments have been ontime and we have excellent credit and even a long history with a different real estate loan with the same lender (it's paid off).
I would suggest you to speak to some of the other local lenders and check out if they can help you in getting a refinance.
Things are working out, it seems.