Hey Realtors, full disclosure! 📢

If you’ve worked with FHA buyers in the past, you know that the laws surrounding gift funds have always been a bit tricky. Well, here's some great news: FHA guidelines have recently changed!

As of now, if a gifter is contributing funds toward a buyer’s closing costs, those funds do not have to be sourced! Yes, you read that right—the gift funds can now be sent directly to the title company. 🎉

However, before you get too excited, there’s a catch: depending on the lender you’re working with, they may still require the funds to be sourced as part of their in-house underwriting. So, don’t skip this step! Always confirm with the lender to make sure you’re on the same page.

For instance, in a new construction deal I’m working on, the builder’s lender is still requiring both gift letters and bank statements from the gifter. 🤔

Here’s what you should do moving forward:

1. Verify with the lender whether a gift letter and bank statements are needed to source the funds.

2. If required, make sure all necessary documentation has been submitted.

3. If not required, ask when the gifter will wire the funds to the title company. It’s always best to get those funds sent as early as possible to avoid any last-minute delays.

The bottom line: Ask the right questions early on to keep your deals on track and avoid surprises.

That’s it for now! Stay informed and keep your deals running smoothly. 😉

#RealtorTips #GiftFunds #FHA #RealEstateSuccess #ClosingTips #SmoothTransactions #AltheaHearst