Getting Gift Funds for your down payment on a Kentucky FHA Mortgage.
Getting Gift Funds for your down payment on a Kentucky FHA Mortgage.
What is the Great Way to do it?
To avoid getting turn down for your Kentucky FHA mortgage loan if you are getting a gift from your mom, dad or another family member, please follow these rules:
The source of the down payment must always show FHA gift funds and their source (usually a relative). It cannot be a personal loan or cash.
Common Gift Fund Issues:
Scenario 1 – only gift funds being used in transaction
Gift amount: $5,000
Common submission problem:
- Source of down payment submitted as “checking and savings account.”
- Asset submitted as “checking account” with the financial institution as “Gift from Relative.”
Correct submission practice:
- Source of down payment should be submitted as an “FHA Gift from relative for $5,000”
- If funds are not yet in the bank account, DU should be submitted as…
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Kentucky First-Time Home Buyer Programs | USDA, FHA, VA & KHC Loans 