Empower Home Loans

You’re responsible. You’ve got a great job – and have for a while. You having been paying off debt and are working on a savings plan for the unexpected things that life seems to bring. You also know you can afford a house payment and have run the numbers over and over in your head. It all seems to make perfect sense – except for the down payment.

ok…we’re doing it – we’re going to buy a home

If you don’t qualify for FHA/VA loan programs you must go the conventional financing route – and the bottom line is that you need money in the bank – money that has been seasoned, or you need a the down payment in the form of a gifting. Don’t know a family member that would gift you the money? You may be surprised. Those that are fiscally able to assist, would love to help – especially with a sound investment such as Real Estate. Especially in this incredible market (once in a life time prices) You may be surprised. Just ask.

here’s how

If a family member is willing to provide you with funds for the purchase of your house free and clear of any monthly repayment obligation, then you’re in the clear. The important thing is that the bank doesn’t to see any more outgoing cash flow obligation than necessary. Any arrangement you determine between parties is completely up to you. You simply need a gift letter from them stating that this is the case. So how do you write a gift letter? That’s easy.

A gift letter should be general statement of intention: A letter to the lender from the donor stating a gift of money has been made to the buyer in order to purchase specific property. The relationship of the donor and donee is stated, as well as the amount of the gift.

for the giver

You are so generous. Just note that you can give up to $12,000 per giftee tax-free. The remainder of the gift is subject to a gift tax, however, the tax can be applied against the unified tax credit (the most you can give in your lifetime). So, if are giving less than a few hundred thousand dollars, you are covered.

Your best days are ahead.

-Empower

Want to know more about your credit, and the mortgage process? Just ask. We have some great tools to help you – and it’s all free. If you would like a copy of our Client Information Pack (CIP) filled with lots of helpful advice about your credit, lending, and mortgage guidelines, simply navigate to the contact page, send an email, or complete the online application for more helpful information.

To claim your copy, simply click here:

or visit the Empower Home Loans website by clicking here:

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This entry was posted on Sunday, February 7th, 2010 at 9:52 pm and is filed under Credit Facts, FHA, First Time Home Buyer, Home Loans, Mortgage, Mortgage Tips, Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.