One of our most commonly asked questions is: “Can I use a gift for my down payment?”
The easy answer is YES! However, it has to be documented. That documentation includes:
- A Gift Letter signed by you and the gifter
- A copy of the check or wire
- A bank statement from the gifter, showing the money leaving their account
- bank statement from you, showing the gift available in your account
Now I know what you’re thinking: that’s a lot of documentation! What if my family member won’t provide it?
Well, unfortunately they are going to have to provide it. This is not a Team Get It Done thing, not an Envoy Mortgage thing, this is a Federal Underwriting Guideline. Ever dollar that goes into this real estate transaction needs to be fully documented.
So, you’re saying I can’t get cash from under my parents’ mattress and use that for my down payment?
No, cash under your parents’ mattress is not allowed, it will not work. In fact cash of any kind will not work because it cannot be documented in any way.
Alright, that’s a gift!