Gift Letter to close on property

[Lonnie Thomas]

I am just about at the finish line on closing on my first investment property 11/4 is the close date. I have an investor gifting me the funds to close. The bank is making it hard saying that a friend can not gift the funds, that it has to be a family member. Has anyone had a similar experience?

Thanks

LT

[David Robinson]

@Lonnie Thomas I pulled this from hud.gov that regulates FHA loans, hope this helps

4155.1 5.B.4.a

Description of

Gift Funds

In order for funds to be considered a gift, there must be no expected or

implied repayment of the funds to the donor by the borrower.

Note: The portion of the gift not used to meet closing requirements may be

counted as reserves.

4155.1 5.B.4.b

Who May

Provide a Gift

An outright gift of the cash investment is acceptable if the donor is

 the borrower’s relative

 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 home

ownership assistance to

 low- and moderate-income families, or

 first-time homebuyers.

So if you can document the relationship of the gift giver from one of the above it may help.