Brother of borrower
if he is the realtor on the purchase of the subject property can the brother/realtor gift the funds from his commission on the sale towards the borrower's downpayment? Would this differ from loan type to loan type? by mortga_843_507 from Jacksonville Beach, Florida. Aug 27th 2012
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions
Brother would be allowed to gift funds, but not commissioned funds from the closing of that purchase. If the gift occurs previous to the closing of the purchase then it is ok.
Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions
No he wouldn't be allowed to do that.
Eric Parsons (ekpars_945_560)
#157 ranked lender in Florida - 2 contributions
There is an exception for family members who are also realtors:HUD 4155.1 5.B.6.d Commission From the Sale of the PropertyIf the borrower is a licensed real estate agent entitled to a real estatecommission from the sale of the property being purchased, then he/she mayuse that amount for the cash investment, with no adjustment to the maximummortgage required.A family member entitled to the commission may also provide gift funds tothe borrower.Reference: For information on gift fund requirements, see HUD 4155.15.B.4.Eric ParsonsFidelity Funding Mortgage Corp.Tel. 561-746-1717Mobile: 561-602-0219Fax. 561-746-7383ekparsons@goffmc.com
LISA OGLESBY (ctcloan)
#160 ranked lender in Florida - 13 contributions
That would be acceptable for FHA financing.Lisa Oglesby -386-569-3761lisa@gulf-western.com
Eric Parsons (ekpars_945_560)
#157 ranked lender in Florida - 2 contributions
You are allowed to do it on a conventional loan as well but the buyer has to contribute 5% of the purchase price towards the down payment from his own funds.
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