Down Payment Assistance - Gift Funds

Post date: Mar 21, 2014 12:42:2 AM

Gift funds constitute money given as a gift to the customer. Information about gift funds is used to verify that the funds are coming from an appropriate source and in an appropriate manner. For example, it helps to ascertain that the gift is not an inducement to purchase a certain property. Appropriate sources are typically relatives, a fiancé or fiancée, or a domestic partner. A gift from any other source may be considered an inducement to purchase and may require a reduction in the sales price.

Customers will be asked to complete a gift-letter document, a copy of which is completed for each individual gift. Be sure to include the following information on the document:

• • Donor’s name and mailing address including the street, city, state, and ZIP code

  • Donor’s telephone number, including area code

  • Amount of gift

  • Verification of the transfer of gift funds

  • Recipient (must be the customer)

  • Donor’s relationship to the customer

  • Subject property address including the street, city, state, and ZIP code

  • Location of funds, either customer’s or donor’s account; depository name, address, and account number

  • Donor’s and customer(s)’ signatures