FirstBank FTHBPacket FinalNoBleeds - Flipbook - Page 11
ARE YOU GETTING
WHAT YOU NEED TO KNOW AND PROVIDE.
Here are a few things you must know before funds start
The donor or provider of the gift must be a family member, fiancé or domestic partner. They
must provide evidence that they have the ability to provide you with the gift. This proof of
ability can be a copy of their bank statement, a copy of the canceled gift check or a signed
letter from their bank attesting to the availability of funds in their account. The underwriter’s
discretion is always at play here, so more than one of these items may be required.
THE GIFT LETTER
We will provide a form for the donor to complete and sign. It will include items such
as the donor’s name, address and relationship to you; the donor’s account information;
the property being purchased; the dollar amount of the gift; and the date or
approximate date of transfer along with a statement that the funds are a gift with no
expectation of repayment.
Documenting the transfer is vitally important. The donor should give the gift in the form
of a check or wire. If by check, make a copy then deposit it in the account that is already
being used for verification of funds to close. DO NOT combine this deposit with any
other incidental deposits. You should provide a copy of the deposit slip or confirmation
and either an online update or the next account statement to evidence that the deposit
cleared into the account.
Some programs allow for the entire down payment to be in the form of a gift. Others
may require that you have at least 5% of the purchase price from your own funds unless
the total down payment is 20% or more. As these rules can vary or change at any time,
never hesitate to consult with us for the specifics as they relate to your transaction.
While the documentation requirements may seem excessive at times, please remember
that the underwriters are simply following the rules to assure that your down payment is
not borrowed and that any allowable gift funds are coming from acceptable sources.