MA Property Management: Wedding Gifts as Downpayment
In the past people used to give newlyweds wedding gifts so that they would be able to furnish their lives with household items. Then there was a trend where newlyweds would register at big store. These days newlyweds tend to turn contributions toward a down payment on a home. It may seem a bit weird to ask people to pay for contributions towards their home but it is happening. Not everyone can afford a down-payment for a home so they have to be innovative to raise the money.
There are websites such as FeathertheNest.com, DownPaymentDreams.com and HatchMyHouse.com which help people collect these funds. Getting money to help you buy a home is far better than getting gifts you don’t plan on using. It also saves a lot of valuable time as people won’t have to go to the extra mile to find gifts for you.
The downside of all of this is that you need to keep records of all the “donations” you get. Mortgage lenders need to know that the gifts from various people are not a loan. This is because loans will make it harder for people to repay the mortgage. So if you have documentation, you can show that it is not a loan.
All you need is to spend $50 to register on a site like downpaymentdreams.com so that you can receive gifts via PayPal. The registration fee also allows the documentation the lenders will need, so it makes things easier for you.
MA Property Management: DIY
If you don’t want to spend money on registering for a service, you can always do everything yourself. Ask the giver to give you a gift letter with each donation to your account. The gift letter needs to have the name, address , phone number and should list the relationship to the recipient. It also needs to state the amount given as a gift, the date it was given and clearly state that there is to be no repayment. In the event that a home is found, the address of the recipient should be included.
FHA loans require the giver to provide the bank statement showing the gift. There may be some loans which require a portion of the down payment to come from the applicant’s own money. The rest allow all the down payment from gifts.
A checking or savings account will suffice if you want to handle things on your own. If not, you can always register on the websites listed above.
We hope you liked our guide “MA Property Management: Wedding Gifts as Downpayment”.