The full explanation
Under Fannie Mae's rules, the letter states the amount of the gift, says no repayment is expected, and gives the donor's name, address, phone number and relationship to you. The lender also verifies that the money moved from the donor's account to yours or to the closing agent.
An example
Karina's parents give her part of the down payment. They sign a gift letter saying they do not expect the money back, and Karina keeps the transfer receipt for her lender.
You will see it in…
- The lender's document list when someone gives you money
- The record of the transfer from the donor to your account or the closing agent
- Each loan's rules on who may give you a gift
