Reader Question: Do underwriting guidelines vary between lenders?

March 5, 2013 by 1 Comment

I recently received this email from a Mortgage Porter subscriber:

Do different banks need different underwriting documents? I am talking to two lenders now, and one will give me a lower rate but asks for the bank statement from my family which wires me money; the other one has a higher rate but only needs a gift letter. Is it because some banks are more strict because of their lower rate? Thanks.

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Gifts from the Bank of Mom and Dad – Part 2: Conventional Financing

March 12, 2010 by 2 Comments

PLEASE NOTE: This was written in 2010 and guidelines have changed. Please refer to our Conforming Mortgage Guide or contact me for additional information.

Often times when gifts from family members are involved, borrowers my opt to use FHA financing since the guidelines are (currently) more flexible than conventional with regards to gifts.   With FHA, a gift from a family member can go towards to borrowers minimum required investment with conventional financing, it cannot. [Read more…]

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Gifts from the Bank of Mom and Dad – Part 1: FHA

August 17, 2008 by Leave a Comment

NOTE: Guidelines constantly change – this was originally written in 2008! Please refer to our FHA guide for additional information.

Home buyers using FHA to finance the purchase of their home can get help from family members towards the down payment and closing costs in the form of a gift.  NOTE:  With the passage of HR 3221, parents will actually be able to contribute towards the down payment and closing costs as a loan instead of a gift (more info to follow–this is not in effect until October 1, 2008). [Read more…]

Filed Under: Home Buying, Mortgage Programs Tagged With: , ,