Mortgage News

4 Rules You Must Understand About Down Payments

June 4th, 2014

You may know a home loan requires a down payment and that the amount depends on the loan program you choose. 

You may not know all down payments must be properly sourced.

What does that mean?

- If the money is a gift, you need a letter from the person stating as such and that you don't need to repay the amount. You also need to show a copy of the check.

- If the down payment comes from your bank account, a lender needs to make sure you have the money through bank statements. For more, check out this article on my website:
 8 Documents You Need to be Pre-Approved for a Loan.

- If the funds are proceeds from the sale of a property, a lender will need a copy of the HUD settlement statement that shows the transaction. 

- If the money comes from a retirement fund, you need to provide the terms and conditions for borrowing against the retirement funds, so the lender can verify if any repayment is required. 

Tidewater Home Funding

Tidewater Home Funding, LLC NMLS# 41552
(www.nmlsconsumeraccess.org).
Equal Housing Lender.

Licensed in Virginia, North Carolina & Florida.

VSCC Bureau of Financial Institutions, P.O. Box 640, Richmond VA 23218-0640, (1-800-552-7945) www.scc.virginia.gov/bfi

Search Our Site