Custom designs don’t come cheap. And if you’re like most people you may not always be able to afford the luxury of hiring an interior designer or a contractor to enhance your home with
What’s a Gift Letter for a Mortgage?
Dated: October 3 2020
Views: 185
What’s a gift letter?
A gift letter for a mortgage is a document that helps you, the borrower, show the lender that your gifted down payment funds are from legit sources who have a relationship with you, and that the money you’ve received is not ill-gotten gains. The letter also ensures that the funds aren’t a loan, and you don’t have to pay them back.
What’s included in it?
The letter identifies the giver and their relationship to you, specifies the amount of the gift, and notes the financial means that enable the giver to gift the funds—with bank statements as proof. The gift letter should also specify how the financial gift is to be used, as well as the address of the home the recipient is buying. The giver should also note that the money won’t have to be paid back. (If you were to have to pay the money back your lender would have to factor in the repayment to see if you’d still qualify for the loan).
The giver should also specify that they won’t place a lien on your potential property, or make a claim to it, despite their contribution to its purchase.
How should the letter be composed?
Your lender may have a template you’re required to use, so ask them before crafting a letter from scratch.
Is there a cap on how much money you can receive?
Although there aren’t many rules that limit how much money you can be gifted, the giver should take tax implications into account.
The IRS specifies that an individual can gift up to $15,000 without facing any tax penalties. Through a tax rule called “gift splitting” married couples are permitted to gift as much as $30,000 to an individual without liability. Any gift over those amounts can be subject to a gift tax.
Ready to Find Your Dream Home in Vero Beach?
Search:
Chip Boyer
Chip is the IT Manager for Alex MacWilliam Real Estate. He handles the technology needs of the company as well as helping agents in their day to day problem solving.....
Latest Blog Posts
Everybody wants a nice, spacious and comfortable home – but the problem is that when houses like these hit the market, they tend to sell quickly (and sometimes for over asking price). So how
If you’re like many people buying a bigger home for sale in Vero Beach, you’re probably thrilled about having more space – but here are three mistakes you should avoid as you house
When you begin your home search you want to know some of the things you can expect, like market conditions and steps during the home-buying process. Here are answers to some common questions from
The data relating to real estate for sale/lease on this web site come in part from a cooperative data exchange program of the multiple listing service (MLS) in which this real estate firm (Broker) participates. The data is provided exclusively for the user's personal non-commercial use, and may not be used for any purpose other than to identify properties that the user may be interested in purchasing or leasing. The properties displayed may not be all of the properties in the MLS's database, or all
