Mortgage Gift Rules – How Much?

Posted by
AZ Mortgage Gift Rules
Mortgage Gift Rules

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).

Apply for a Home Loan 
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
Google

 

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *