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ok a bit of backstory we are applying for a house and are already in the process where we have a mortgage loan in place and neat step is appraisal. My father in law is willing to give us $8000 to use for closing cost this will be a gift and will not need to be paid back by us. It is coming from my farther in laws business account I believe he does not want to give anyone his bank statement as its his business and doesn't need anyone looking at how it is run and his transactions is there a way he can just send like the first page that has the accounts and states how much money is in said account and not the whole bank statements and he will also need to fill out/write a gift letter which I do still have to talk to him about. We don't have anyone else that can give us this money and the last bank statement we have in Feb won't have that in our account and we are set to close April 5th of this year please help we are going through FHA for the loan if that helps
i think it is coming from a business account he owns and operates his own business I am not 100 percent certain which account it would be from, anyway my lender advised they need the bank statements so I will try to talk to him
Maybe I'm missing something, but someone seems to be making this unnecessarily complicated. Is there some reason he can't or won't make this gift by writing you a $8000 check on that business account? Deposit the check into the account you plan to pay your mortgage out of. Those funds can then be put toward your first few or extra mortgage payments.
Maybe it would be simpler to alter the timing. Nothing prevents him from presenting you with this gift at a later time...after your house purchase deal is completed and set for example. Then you could apply the gift funds wherever you want and it wouldn't alter your financing plans.
FWIW, a relative sent me a check for $10K out of the blue. I'm pretty sure her accountant had advised her to start liquidating some of her assets as that amount just happened to be the IRS limit that didn't incur gift tax for that year. She didn't specify what I could use it for, but I just happened to be starting the search for my first house purchase. Deposited the check into my own account, waited for it to clear, then used the funds for the down payment.
Last edited by Parnassia; 02-26-2024 at 05:13 PM..
its not that he can't or won't FHA rules are that he can't just give us a check for the amount the funds have to be in the specific account for 60 days or more before even applying for the loan basically "seasoned money" and he also has to sign a gift letter we wouldn't be able to close without the money unfortunately and even if he writes a check he still has to show his bank statements from the amount leaving the account and then we have ro give bank statements showing it went into the account its stupid but thats FHA loans we can't go convebtial as my credit score isn't the greatest
its not that he can't or won't FHA rules are that he can't just give us a check for the amount the funds have to be in the specific account for 60 days or more before even applying for the loan basically "seasoned money" and he also has to sign a gift letter we wouldn't be able to close without the money unfortunately and even if he writes a check he still has to show his bank statements from the amount leaving the account and then we have ro give bank statements showing it went into the account its stupid but thats FHA loans we can't go convebtial as my credit score isn't the greatest
Seems to me, if you want the FHA loan you need to follow their rules...or not get your financing.
If revealing the business details of the original account poses such an issue for him, maybe he should transfer those funds out of the business account and into a personal account. Then write you a personal check. At that point, all he would need to do is meet the lender's bank statement requirements. Why is that such a problem? The whole thing is starting to smell. Maybe you'd be better off without that.
Guess I'm having trouble understanding why you're pursuing a loan deal you can't afford. What were you planning to do if no one stepped up to make you this gift?
Last edited by Parnassia; 02-26-2024 at 05:55 PM..
we were not planning on closing costs costing nearly 18,000 we had enough for down payments and some closing costs but not that much FHA only requires 3.5 down which is what we have
When I gave my son the downpayment for their house, I wrote a gift letter which it turns out they didn't need. No one should be looking at my bank statements and no one did.
But they did look at my son's. So are you sure you have the right info?
You are up against the Anti-Money Laundering Act, part of the Bank Secrecy Act. Quick note: real estate is the #1 way to launder money for drugs and terrorism.
A mortgage lender must conclusively prove all funds used in the transaction are rightfully belonging to the borrower. This also applies to gifts; otherwise, 200K gifts to clean money would be an option. Conclusively means the donor has the funds to give you (on a statement) and you received those very same funds (otherwise, someone else could give you 8K and say it was him). If daddy doesn't want his business statement in play, tell him to put the money in his checking account and then give the gift. As bizarre as it sounds, we do not go chasing the donor's funds, whether they borrowed or moved money.
But we do need to see a complete statement, with his name on it and the appropriate funds. The lender is also going to ask to see those funds exit his account, as well as, enter your account.
Back about a decade ago, it was found lenders were not quite diligent on documenting as the regulators were requiring. So, what did they do? They made it not only a penalty to the lending institution, but also the individuals handling the loan. Now you have skin in the game for the processor, the underwriter, the closer and the loan officer. Each can be fined 50K, face prison time and expelled from the industry. I don't know of anyone that is going to take one page of a bank statement, just for that reason. And if they do, they are unaware of the potential penalties.
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Maybe I'm missing something, but someone seems to be making this unnecessarily complicated. Is there some reason he can't or won't make this gift by writing you a $8000 check on that business account? Deposit the check into the account you plan to pay your mortgage out of. Those funds can then be put toward your first few or extra mortgage payments. 
