Homeownership is an exciting prospect, but even if you can afford the monthly mortgage payments, coming up with a down payment can be a big obstacle.That’s especially true if you want to put down 20% to avoid paying extra for private mortgage insurance (PMI), which many lenders require as protection against default.A down payment, though, certainly isn’t cheap.
The gift can be used for the entire down payment, and it can also be used to pay closing costs and to establish your deposit into your property tax escrow account. Really, everything that you need to pay at closing can come from a gift. There are two ways for a buyer to receive gift funds – the hard way and the easy way.
On the other hand, If you're going with a FHA mortgage you have more options. You can receive gift money to use towards a down payment.
The parents (sellers) can gift some of the equity as a down payment to their kids (buyers). conventional financing only requires a gift of equity of 5% to qualify for this program. If you have any questions about any of this information, or you would like to get approved for financing, please feel free to contact me directly at 858-442-2686.
Whether you’re receiving a gift or loan, it’s smart to raise the down payment money and deposit it in your account several months before you apply for a mortgage.  All data from National Association of Realtors’ 2012 Home Buyer and Seller Profile.
Conforming Vs Non Conforming Loans A non-conforming loan is a loan that fails to meet bank criteria for funding.. Reasons include the loan amount is higher than the conforming loan limit (for mortgage loans), lack of sufficient credit, the unorthodox nature of the use of funds, or the collateral backing it. In many cases, non-conforming loans can be funded by hard money lenders, or private institutions/money.
In many cases, home buyers can use gift money to cover the down payment and/or closing costs associated with a mortgage loan. Did you know: Conventional, FHA and VA mortgage loans allow borrowers to use gift money from a third party to cover some — or even all — of their down payment expense.
 Gifts from family members played a part. the entire amount you have saved toward your down payment. You can put less money toward your down payment and still pay the same amount of mortgage.
It’s calculated by taking the mortgage. cash gifts from friends, family or business partners toward a down payment. Setting aside any workplace bonuses or financial windfalls (like an inheritance).