The Home Ownership Thread

[idfnl]



No, funds are totally legit. When I had previously spoken with them, I was told only up to 5% could come as a gift. It's possible this only meant when they were evaluating how much money I had as cash on hand for obtaining my pre-qual? By the time I talk to them again, the money will be free and clear in my bank account.

In reading through this: http://www.nytimes.com/2012/12/30/realestate/mortgages-to-givers-of-down-payments.html?_r=0
Maybe I heard it backwards... that at least 5% had to be mine, which it is, by far. Can anyone clear this up for me?

I've never heard of this 5% limit. Is it a bank rule? I know a guy whose parents gave him 10% of the down payment.

Can you just wait until the funds clear? All you have to do is substantiate their source.

 

[VLSI]



I've never heard of this 5% limit. Is it a bank rule? I know a guy whose parents gave him 10% of the down payment.

Can you just wait until the funds clear? All you have to do is substantiate their source.

I think I had it backwards, so at least 5% mine, which isn't an issue. Funds will be cleared, no problem there. What does substantiating their source entail? Gift letter?

 

[idfnl]



I think I had it backwards, so at least 5% mine, which isn't an issue. Funds will be cleared, no problem there. What does substantiating their source entail? Gift letter?

Yes, but the money has to be show coming from an account that belonged to the gift giver. You can't just show them your account, you have to show the tracing of the funds.

 

[VLSI]



Yes, but the money has to be show coming from an account that belonged to the gift giver. You can't just show them your account, you have to show the tracing of the funds.

Ok, thanks. That's not going to be a problem. This should all work out then

 

[imschatz]



Ok, thanks. That's not going to be a problem. This should all work out then

Ya, my bank asked for account info/ statements from my gifter .. to check to make sure the funds where there at least 90 days. They didn't need much .. just showed them a LOC that had the credit available 90 days before.

 

[aravenel]

I honestly didn't know this was a thing at all. I know a bunch of people whose parents paid way more than 5-10% of the down payment. How did that work then?

I'm asking seriously, not trying to be snarky at all. I seriously didn't know this was a thing.

 

[imschatz]



I honestly didn't know this was a thing at all. I know a bunch of people whose parents paid way more than 5-10% of the down payment. How did that work then?

I'm asking seriously, not trying to be snarky at all. I seriously didn't know this was a thing.

Ya, I don't think there was a limit now how much my dad could have given me. I just had to document that he had the money for more then 90 days .. as was the case we just showed he had the available credit in his LOC. My bank had a standard form my dad just put the value being gifted and signed it. It was probably the easiest part of the whole process. For all I know, that could have been 20-50% or more .. there was never any discussion about a possible limit to the size of the gift.

Then again .. this is in Canada, both using large banks, in 2 locations with very healthy housing markets, where getting a mortgage took me about 30 minutes (two 15 minute meetings). Likely a bit different in at least some parts of the US.

 

[NorCal]

nvm

 

[VLSI]

Homeowner's insurance. How much does it matter who I have? Any recommendations or companies to avoid? Is Mercury any good? Cheap if nothing else...

 

[idfnl]



Homeowner's insurance. How much does it matter who I have? Any recommendations or companies to avoid? Is Mercury any good? Cheap if nothing else...

If you have a military connection thru a parent or spouse, I'd recommend USAA.

 

[VLSI]



If you have a military connection thru a parent or spouse, I'd recommend USAA.

Unfortunately nope Liberty mutual is like 200 more per year than Mercury for same coverage and at least I've heard of them.

 

[brokencycle]



If you have a military connection thru a parent or spouse, I'd recommend USAA.

+1 USAA insurance is the best. All the people involved in my closing asked me if they were sure my insurance rate was right because it was so low.

Their customer service is also top notch.

 

[idfnl]



+1 USAA insurance is the best. All the people involved in my closing asked me if they were sure my insurance rate was right because it was so low.

Their customer service is also top notch.

And they give you a distribution at the end of the year.

 

[aravenel]



If you have a military connection thru a parent or spouse, I'd recommend USAA.

+2. USAA rocks.

 

[upthewazzu]

Unfortunately nope

Liberty mutual is like 200 more per year than Mercury for same coverage and at least I've heard of them.

Mercury is one of those companies that takes anyone, regardless of past history. I'd steer clear.