gift funds - The Mortgage Porter

Using Gift Funds for a Down Payment in Washington State: What You Need to Know

One of the most common ways home buyers get help with a down payment is through gift funds from family members. If your parents, grandparents, or other relatives want to help you buy a home, gift funds can be a legitimate and well-documented source of funds for down payment and closing costs — as long as you follow the rules.

Here’s what you need to know about using gift funds for a mortgage in Washington State, including how requirements differ by loan program and what documentation is required. [Read more…]

Reader Question: Do underwriting guidelines vary between lenders?

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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