Mortgage Broker Company - What Do You Mean I Can’t Borrow Money From My Family For A Down Payment For My Mortgage?

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Can family members be of assistance? sure! but - your lender requires it to be in the form of a “gift”. Your lender does not want to know that you need to pay this money back. Because then it is debt again.

The lender will give you a form called a “gift letter”. The form state the relationship between you and the person gifting you the money. The address of the purchased property, the amount of the gift, and sometimes the source of the funds used to make the gift. The letter will also clearly state that the funds are a gift and do not need to be repaid. The both parties sign the letter.

Most likely the person giving you the “gift” will have to prove they have the ability to pay the amount.

Make sure you keep a copy of the check used to make the gift, and a copy of the deposit receipt.