A gift can be provided by a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; or a fiancé, fiancée, or domestic partner. The donor may not be, or have any affiliation with, the builder, the developer, the real estate agent, or any other interested party to the transaction.
I. Gifts must be evidenced by a letter signed by the donor, called a gift letter. The gift letter must:
• specify the dollar amount of the gift;
• specify the date the funds were transferred;
• include the donor’s statement that no repayment is expected; and
• indicate the donor’s name, address, telephone number, and relationship to the borrower.
II. To acceptably document the gift funds, the transfer of funds must happen in a well-documented manner.
1. Donor withdraws funds from their account
2. Donor purchase cashier’s check for amount of gift with check made payable to the buyer only
3. Donor obtains a 30-day printout statement of their bank transactions which shows the funds leaving the account.
a. The donor’s full name and account number must be on the statement
b. The Banker providing the printout must sign/date/stamp the printout and certify it’s accuracy.
4. Provide us with a copy of the gift letter, cashier’s check and signed bank printout.