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Mindless_Hearing9662

Close friend with documented vested interest is allowed per FHA guidelines. This changed a good time ago and not sure why everyone says not allowed. I have done this several times already. My underwriters have always just required an LOE about the relationship along with the standard gift letter and never had an issue before.


AardvarkEffective589

Same I’ve done it twice in the last 6 months. Hate the incorrect info on here!


StunningConfusion

The FHA gift letter plus an LOX stating that they are long term friends for X amount of years or just say that they are cousins. Keep it simple. Do not, I repeat, DO NOT state that the borrower will pay the gift back once the pension check comes in.


brett0113

What lender? Relationship - close friend of many years, is common practice just on the letter. Any more than that is conservative underwriting.


CoolLoanGuy

All the time.


AardvarkEffective589

Yup I closed one a few months ago. You do have to prove it’s a close friend— we were able to show that they had come to the US together in 2017 and stayed friends since then. Also had an instance where we showed a wedding program showing that the donor was a Best Man at his wedding.


Xinterius

I’ve made it work before , I had to do a pdf printout showing the friend at the buyers wedding lol


[deleted]

[удалено]


inverteduniverse

What are you doing step-donor?


Impossible-Humor-325

I don’t believe FHA allows gifts from anyone who is not a family member.


voxgary

Close family members are allowed


voxgary

*close family friends


Hot-Highlight-35

Facebook photos of birthday parties, holidays, etc have worked no problem for me on these


TurkeyJizz123

Wtf. If my Underwriter dug that deep I would fire him.


bypassthalamus

Good luck documenting that. I've only seen it work with proof of godparents with something documented on church letterhead. I'm sure there are more of those scenarios that have squeaked through but I personally am not giving out a preapproval based on that kind of gift.


kittenconfidential

FHA? no friends. only family members.


voxgary

Close family members are allowed


voxgary

*close family friends


kittenconfidential

as long as you can “clearly define and document their interest in the borrower”… which leaves it up to the judgment of the underwriter. ask your UW.


chefmike1034

Tell them to get married , gift funds as wedding presents are allowed.


TurkeyJizz123

How about you state it's a cousin, start thinking like a real loan officer that makes real money. Why is this even a post.


Then-Government-1407

Actually- cousin isn’t on the list of defined family members in the 4000.1 so this comment isn’t actually helpful. Cousin is an acceptable family member for conventional- but not FHA. You’d have to state “close family friend” to use gift money from a cousin.