Who is eligible to give an FHA gift fund?

The discrepancies your hearing is a result of lender overlays or additional guidelines.. FHA insures loans, bank lend money... the lender can come up with their own guidelines above and beyond what FHA will allow. Some lenders will restrict gifts from direct family members only... others will go by FHA guidelines.. the bottom line is, the funds cannot be a loan...I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Generally, family members. That can include cousins, aunts, uncles, fiance, etc. The FHA is just concerned that you are not borrowing the money and that it truly is a gift that does not have to be repaid!

Straight from the FHA lenders guide: An outright gift of the cash investment is acceptable if the donor is? the borrower's relative? the borrower's employer or labor union? a close friend with a clearly defined and documented interest in theborrower? a charitable organization? a governmental agency or public entity that has a program providing homeownership assistance to? low- and moderate-income families, or? first-time homebuyers.

How can you define or document a close friend's interest in the borrower?