OT: Money gift from parents for downpayment

[AK]

Just as important as seasoning funds is the question of where you’ve seasoned them. If you’ve parked your gift funds in a brokerage account … even in cash or cash equivalent … I’d suggest moving them into a savings or checking account well before your expected closing date. Thicker-headed lenders seem to assume that anything in a brokerage account needs to be “liquidated” even if it’s already liquid, and you’ll need to show a bank statement to prove the funds are available for transfer.

[sdcellar]

Can’t say one could determine definitively from all of the above, but regarding the primary point of the post, the limit that you and your spouse can be gifted (without tax consequences) in 2010 is $52,000. The limits are per donor and per recipient and is $13,000 this year. So, you can receive $13K from each your FIL and MIL and your spouse can do the same.

Also, it’s important (for your in-laws) to understand that the gift payments themselves are not tax deductible. The gift money will not be taxed, but they cannot reduce their taxable income by the $52K.

Anything above that ($48K in your scenario) is subject to the lifetime estate tax exclusion ($1 million at the moment) and your in-laws can decide whether they want to pay the taxes now or later. Later’s decidely better if they’ll come in below a million, but that’s probably not too likely. Otherwise, I believe there are pros and cons that they should discuss with a qualified tax/estate planner type.

[sdcellar]

Can’t say one could determine definitively from all of the above, but regarding the primary point of the post, the limit that you and your spouse can be gifted (without tax consequences) in 2010 is $52,000. The limits are per donor and per recipient and is $13,000 this year. So, you can receive $13K from each your FIL and MIL and your spouse can do the same.

Also, it’s important (for your in-laws) to understand that the gift payments themselves are not tax deductible. The gift money will not be taxed, but they cannot reduce their taxable income by the $52K.

Anything above that ($48K in your scenario) is subject to the lifetime estate tax exclusion ($1 million at the moment) and your in-laws can decide whether they want to pay the taxes now or later. Later’s decidely better if they’ll come in below a million, but that’s probably not too likely. Otherwise, I believe there are pros and cons that they should discuss with a qualified tax/estate planner type.

[sdcellar]

Can’t say one could determine definitively from all of the above, but regarding the primary point of the post, the limit that you and your spouse can be gifted (without tax consequences) in 2010 is $52,000. The limits are per donor and per recipient and is $13,000 this year. So, you can receive $13K from each your FIL and MIL and your spouse can do the same.

Also, it’s important (for your in-laws) to understand that the gift payments themselves are not tax deductible. The gift money will not be taxed, but they cannot reduce their taxable income by the $52K.

Anything above that ($48K in your scenario) is subject to the lifetime estate tax exclusion ($1 million at the moment) and your in-laws can decide whether they want to pay the taxes now or later. Later’s decidely better if they’ll come in below a million, but that’s probably not too likely. Otherwise, I believe there are pros and cons that they should discuss with a qualified tax/estate planner type.

[sdcellar]

Can’t say one could determine definitively from all of the above, but regarding the primary point of the post, the limit that you and your spouse can be gifted (without tax consequences) in 2010 is $52,000. The limits are per donor and per recipient and is $13,000 this year. So, you can receive $13K from each your FIL and MIL and your spouse can do the same.

Also, it’s important (for your in-laws) to understand that the gift payments themselves are not tax deductible. The gift money will not be taxed, but they cannot reduce their taxable income by the $52K.

Anything above that ($48K in your scenario) is subject to the lifetime estate tax exclusion ($1 million at the moment) and your in-laws can decide whether they want to pay the taxes now or later. Later’s decidely better if they’ll come in below a million, but that’s probably not too likely. Otherwise, I believe there are pros and cons that they should discuss with a qualified tax/estate planner type.

[sdcellar]

Can’t say one could determine definitively from all of the above, but regarding the primary point of the post, the limit that you and your spouse can be gifted (without tax consequences) in 2010 is $52,000. The limits are per donor and per recipient and is $13,000 this year. So, you can receive $13K from each your FIL and MIL and your spouse can do the same.

Also, it’s important (for your in-laws) to understand that the gift payments themselves are not tax deductible. The gift money will not be taxed, but they cannot reduce their taxable income by the $52K.

Anything above that ($48K in your scenario) is subject to the lifetime estate tax exclusion ($1 million at the moment) and your in-laws can decide whether they want to pay the taxes now or later. Later’s decidely better if they’ll come in below a million, but that’s probably not too likely. Otherwise, I believe there are pros and cons that they should discuss with a qualified tax/estate planner type.

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[HLS]

Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.

BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.

I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.

FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.

FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+

GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.

Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.

IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.

There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.

Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.

Different lenders rarely have rules that are different. Each situation is different.

For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.

Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS

[sdrealtor]

HLS,

Thanks for clearing this up and its good to hear the truth from a true expert. A little knowledge is a dangerous thing and thats why I try to steer clear of providing advice on things I have a little knowledge about.

BTW, great job on the property we closed together today. You advice and execution were as flawless as could be in this market. You are the real deal.

[sdrealtor]

HLS,

Thanks for clearing this up and its good to hear the truth from a true expert. A little knowledge is a dangerous thing and thats why I try to steer clear of providing advice on things I have a little knowledge about.

BTW, great job on the property we closed together today. You advice and execution were as flawless as could be in this market. You are the real deal.

[sdrealtor]

HLS,

Thanks for clearing this up and its good to hear the truth from a true expert. A little knowledge is a dangerous thing and thats why I try to steer clear of providing advice on things I have a little knowledge about.

BTW, great job on the property we closed together today. You advice and execution were as flawless as could be in this market. You are the real deal.

[sdrealtor]

HLS,

Thanks for clearing this up and its good to hear the truth from a true expert. A little knowledge is a dangerous thing and thats why I try to steer clear of providing advice on things I have a little knowledge about.

BTW, great job on the property we closed together today. You advice and execution were as flawless as could be in this market. You are the real deal.

[Author]

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