Posted by 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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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:
- Fannie Mae Rules
- 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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