This month, we feature our continuing series in which we answer common questions regarding the loan process. Today’s question: Can I use gift money as a down payment for a house?
A. In years past, buyers taking out a conventional loan were required to offer the lender a minimum cash investment of their own funds. Recently, however, Fannie Mae announced welcome news for those without large cash reserves on hand: Some lenders will now allow the down payment required for home loans to come completely from a gift, provided the property being purchased is an owner-occupied, single-family residence.
In other good news, the Colorado Housing and Finance Authority (CHFA) is now offering a conventional loan that allows for its 3% required down payment to come from a gift, with no mortgage insurance required for those falling into certain income categories.
Lisa Miles: NMLS #: 286749; CO Lic #: LMB100018629
Julie Whalen: NMLS #: 252298; CO Lic #: LMB100018008
Company NMLS #: 3274. Regulated by the CO Division of Real Estate. Guild Mortgage is an equal opportunity housing lender.
RE/MAX of Cherry Creek, your Denver metro real estate agents.