Here is my 2 part question:1) I recently bought some Lowe's gift cards at a discounted price.

Any payments on the balance remaining from the original loanmust be included in the DTI ratio calculation for the refi transaction. o Funds received as gifts and used to purchase the property may not bereimbursed with proceeds of the new mortgage loan The new loan amount can be no more than the actual documented amount of theborrower’s initial investment in purchasing the property plus the financing of closingcosts, prepaid fees, and point on the new mortgage loan.

The down payment was a gift from my parents, all i paid was the monthly mortgage payment.

With FHA you can get the full down payment as a gift from family etc.

The problem we ran into is the gift of equity is only available to family and that is what we were planning on using for the down payment.

Consider giving them a gift certificate to their favorite restaurant as a token of your appreciation for their patience during this time.Also, step up your watch of the property.

Will your parents be able to loan you some as a "gift"?  

I am in tax working on a specialization in estate, trust, and gift tax and she is in audit and is just waiting for the official CPA papers to come in the mail-woot!.

cite=82.45If the property is owned free and clear and there is no consideration given then you can document the affidavit as a gift, making it a taxable event for you personally and not the Seller. 

A note/gift would not count or be able to be used to pass.