How much of my down payment can be a gift?

You can do that.

20% down payment from a gift of a relative is acceptable for conventional financing. I can assist you with the purchase loan.I look forward to hearing from you soon.Best regards,Gary N. Smith, CMCwww.garynsmith.ushttp://www.facebook.com/pages/Scottsdale-AZ/I-Close-Loans-Thats-All-I-Do-and-I-Do-It-Well/354077824007

Marty, The lender will require a "Gift Letter" from your grandmother stating the 20% is a gift and is not to be repaid. Most lenders will require at least 5% of your own money in the transaction. .... Happy funding, Rudi

Marty, There's no way to edit our remarks. The 5% of your money would not apply on a FHA loan. But, on a FHA 30 year fixed rate loan you still are required to pay 0.55% monthly mortgage insurance and FHA has an upfront fee of 2.25% of the loan mount. Far more expensive than a traditional loan at 80% loan to value. .... Happy funding, Rudi

Hi Marty,If you go FHA, do know that the upfront fees will be going down on Oct 4. and the monthly adjustments will be going up. If your Grandmother is handling the down and you will be responsible for the monthly, you may want to make sure that you can take advantage of this before the monthly raise kicks in. It may have more of an impact than the lower down payment.Best,Matt

Hello Marty, That is acceptable and its a great option for you, putting 20% down will eliminate the Upfront and Monthly Mortgage Insurance. If you are in California please feel free to call me for more information. Houtan.Hormozian@Crestico.com 949-242-5215