Question by poesgirl17: gifting money for a house?
I want to buy my sisters house. I have vaguely heard about “gifting”. She offered to gift us 20,000 so we don’t have to come up with the down payment but is worried that I will have to hold that money in my account for too long. How does this work? Is it phantom money or does there have to be a paper trail linking it to me and if so how long do I have to hold it for. She’s harping on me for details and I can’t find the answers. Can anyone help me?
Answer by Kenneth D
Family members can do a gift of equity. Talk to your mortgage broker. It is a simple process and no cash has to exchange hands.
***ADD: FNMA and HUD guidelines both allow for a gift of equity. Most banks follow these guidelines for conventional loans as well.
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