FHA gifts - acceptable donor

Updated: 07/02/2018
Article #: 107


 

Yes - generally we ask for an LOE explaining relationship

(2) Standards for Gifts
(a) Acceptable Sources of Gifts Funds Gifts may be provided by:
  • the Borrower’s Family Member;
  • the Borrower’s employer or labor union;
  • a close friend with a clearly defined and documented interest in the Borrower;
  • a charitable organization;
  • a governmental agency or public Entity that has a program providing homeownership assistance to:
    • low or moderate income families; or
    • first-time homebuyers.

    Any gift of the Borrower’s MRI must also comply with the additional requirements set forth in Source Requirements for the Borrower’s MRI.

 

Family Member

Family Member is defined as follows, regardless of actual or perceived sexual orientation, gender identity, or legal marital status:

  • child, parent, or grandparent;
    • a child is defined as a son, stepson, daughter, or stepdaughter;
    • a parent or grandparent includes a step-parent/grandparent or foster parent/grandparent;
  • spouse or domestic partner;
  • legally adopted son or daughter, including a child who is placed with the Borrower by an authorized agency for legal adoption;
  • foster child;
  • brother, stepbrother;
  • sister, stepsister;
  • uncle;
  • aunt; or
  • son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the Borrower.

 

Original question:
Can FHA borrowers get a gift from a friend, or does it have to be a family member?  Thanks!

 

 








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