Mortgage Gift Rules – How Much?

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The joy of home financing was once dimmed by strict gift rules.  Thankfully, gift giving regulations for home loans have since loosened.   Let’s take a look at how much buyers can receive as a gift for each type of Arizona mortgages available (learn more here).

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Team@JeremyHouse.com
602.435.2149

FHA Mortgage Gift Rules

There is no limit.  An FHA buyer can receive a gift in any amount toward down payment and or closing costs from a relative or “interested party.”

VA Mortgage Gift Rules

There is no limit.  A VA buyer can receive a gift in any amount toward down payment and or closing costs from a relative or “interested party.”

3. USDA Gift Rules

There is no limit.  A USDA buyer can receive a gift in any amount toward down payment and or closing costs from a relative or “interested party.”

4. Conventional Mortgage Gift Rules

This is where things get interesting.   Conventional loan gift rules break down into 2 categories:

  1. Fannie Mae Rules
  2. Freddie Mac Rules

Fannie Mae has no limit with regard to how much a buyer can receive from family in the form of a gift.

On the other hand,  Freddie Mac is a bit more complex.  Borrower’s using a Freddie Mac based Conventional mortgage needs to show they have their own funds equal to at least 5% of the purchase price unless they are putting 20% or more down. When a 20% or larger down payment is made, there is no limit on gift funds.

Apply for a Home Loan 
Team@JeremyHouse.com
602.435.2149

By Jeremy House
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