Re: Down Payment

Posted by Chris on February 17, 1999 at 18:02:29:

In Reply to: Down Payment posted by Matt on February 17, 1999 at 12:09:54:

: My wife and I are buying a home for the first time. We just paid off credit card debt from the last 5 years totaling around $8,000, so we are essentially debt free. I own my car outright, my wife has a leased vehicle for $400 per month. My parents are retired and have insisted on giving us the down payment for the house. They do not expect repayment. How will the mortgage company handle this? Is there a lot of "red tape" to deal with on these types of issues? I've heard that mortgage companies want you to provide some kind of "proof" that the money is yours, or if it is a gift that it is indeed a gift and not a loan. Does an affidavit suffice? Or, is there a lot of legal work to be done?

When my wife and I bought one of our houses, I was travelling and she qualified for the mortgage on her income alone. Since I was providing the down payment our mortgage lender only required a notorized letter from me stating that the down payment was a gift.

I did the same for my wife's little sister a few years later and since the money was in her savings account before she applied for the mortgage, it was never questioned.

Chris

Follow Ups:

• Re: Down Payment Matt 14:05:44 2/18/99 (1)
  • Re: Down Payment -- PMI Traci 12:11:11 2/21/99 (0)

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: : My wife and I are buying a home for the first time.  We just paid off credit card debt from the last 5 years totaling around $8,000, so we are essentially debt free.  I own my car outright, my wife has a leased vehicle for $400 per month.  My parents are retired and have insisted on giving us the down payment for the house.  They do not expect repayment.  How will the mortgage company handle this?  Is there a lot of "red tape" to deal with on these types of issues?  I've heard that mortgage companies want you to provide some kind of "proof" that the money is yours, or if it is a gift that it is indeed a gift and not a loan.  Does an affidavit suffice? Or, is there a lot of legal work to be done?

: When my wife and I bought one of our houses, I was travelling and she qualified for the mortgage on her income alone. Since I was providing the down payment our mortgage lender only required a notorized letter from me stating that the down payment was a gift.

: I did the same for my wife's little sister a few years later and since the money was in her savings account before she applied for the mortgage, it was never questioned.

: Chris


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