Thursday, September 25, 2014

Kentucky FHA Loans and Gift Funds for Down payment updated Guidelines.

Kentucky FHA Guidelines Update - Gift Funds


Gift Funds Documentation - The Lender must verify and document the transfer of gift funds from the donor to the borrower in accordance with the requirements below:
  • If the gift funds are in the borrower's account, obtain the donor's bank statement showing the withdrawal and evidence of the deposit into the borrower's account
  • If the gift funds are to be provided at closing, obtain the certified check or money order, cashier's check, wire transfer or other official check, and a bank statement showing the withdrawal from the donor's account
Note: Any large deposits to the donor's bank statement that would question the source of the gift funds may be required to be documented.

Verifying Acceptability of Gift Fund Sources:

Regardless of when gift funds are made available to a borrower, the lender must be able to determine that the gift funds were not provided by an unacceptable source, and were the donor's own funds. When the transfer occurs at closing, the lender is responsible for verifying that the closing agent received the funds from the donor for the amount of the gift and that the funds were from an acceptable source.


Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346
 CONFIDEN