Gift Fund (Part 2)

Gift letter:
This letter needs to be signed by the gift donor (the one who gives the gift fund) and our borrower who receives the fund. It indicates (1) the amount of fund, (2) relationship with the borrower, (3) Donor’s information including home address and contact number, (4) location of the donor’s fund.

Availability of fund:
Banks might want to see the donor’s bank statements to see where the fund is coming from. If you receive money from your parents, be ready to provide a copy of the bank statements that show to the bank.

Transfer of fund:
Banks want to see how the fund is transferred from your donor’s bank to your bank. If your donor writes you a check, banks will request for a copy of the “cancelled checks”. If it was a wire transfer, make sure your donor’s bank statement shows where the fund is transferred to

Receipt of fund:
Banks want to see this fund is deposited into your bank account and has not been spent. If it is deposited into your checking account, be ready to show the deposit receipt and/or a copy of the bank statements showing the gift fund is deposited.

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2 thoughts on “Gift Fund (Part 2)

  1. help needed more on

    can donor take the cash advance from credit card and give as a gift with gift letter signed?

    • Underwriter on

      It doesn’t matter to underwriters how the donor obtains the fund – as long as you are not obligated to repay it back as a loan to the donor.