Veterans are in a unique position when it comes to home loans. They are offered a number of great benefits such as easier qualifying, extremely competitive rates and of course zero money down.  While these are all very enticing, there may be other costs that come up that the veteran will have to pay for.  What happens if the veteran does not have the funds to cover some of these expenses?

This is where a monetary gift can come in handy.  Friends and family members can “gift” money to the buyer in order for them to cover costs.  However, there are some requirements in order for a gift fund to be used for a VA loan.

There will need to be a gift letter to include that there is no obligation to repay the money given, the amount of the gift as well as the date of transfer, and the recipient’s information.  Documentation must be available to show that the funds were gifted from the donor; bank statements from both parties must be sent in to the lender.  Unfortunately, cash is not acceptable because it can’t be traced back from a legitimate source.

As a side note: If the gift is a large amount, it may take time for the bank to process the entire amount. Therefore, you may have to wait up to a week for the funds to be cleared.  After the hold is lifted you will need to submit a bank statement showing that the funds are available in your account.

The Chapman Lending Team at HomeBridge Financial is honored to help many veterans utilize their VA home loan benefit each and every year.  We ARE NOT a call center.  Our goal is to provide the best customer service in the industry along with the most competitive rates and fees.

Semper Fi, Dan Chapman CAPT, USMC (vet)

ChapmanTeam@HomeBridge.com          Call (760) 456-7139

Get a Free Rate Quote  –  Start an Online Application

The Top VA Loan Team in California

Related Articles

Higher loan limits have just been announced for 2018.  This is great news for anyone looking to purchase a home in the coming year.  It is not yet confirmed that FHA and VA will increase accordingly, but most likely they will.  If you are currently in escrow and/or closing after…
Read More

The 2018 VA Loan Limits have been released. The VA loan program does not have a maximum amount a veteran can borrow using a VA loan. For 2018, the ZERO down payment limit will increase to $453,100. San Diego has increased from $612,950 to $649,750. The Chapman Lending Team at…
Read More

On December 8th, 2017, The Chapman Lending Team is proud to sponsor the Army-Navy golf tournament at Admiral Baker Golf Course.  Each year the U.S. Naval Academy gives classmates and friends the opportunity to reunite while donating to the Naval Academy Foundation. The Chapman Team will have a table set…
Read More

Most people are already aware that one of the perks of using a VA loan is the zero down payment for homes that are under the loan limits provided for your specific county.  However, another perk is becoming exempt from paying the Funding Fee if you have a service-connected disability…
Read More