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Gift Funds

Gift-Funds-Mortgage-Brookfield-WI

Gift funds are a great way to meet the minimum investment requirements for a home purchase mortgage in Wisconsin. Here are some of the items to keep in mind when gift funds apply to your transaction:

  • You will need to provide a fully-executed gift letter; one will be sent to you from my team once your loan is in process.
  • You will need to provide proof of the donor’s ability to donate funds – this is accomplished by providing a copy of the donor’s most recent statement (all pages) for the account the gift funds came from. While many donors are reluctant to do this, there is no way around it. In the past, the government found that many home-loan-borrowers would borrow additional funds without telling their mortgage lender, then give that money to a family member who would, in turn, give them money back as a “gift” to the home-loan-borrower. If the donor would like to provide the paperwork directly to Envoy, not giving it to the recipient of the gift to send to over), that is perfectly fine.
  • We will need to document that the transfer of funds actually occurred by obtaining a copy of the canceled check (once it has cleared the donor’s account), a copy of the cashier’s check from the donor or a copy of the wire transfer from the donor.
  • Lastly, we will need to provide proof of the deposit into your account (a bank statement summary, stamped by the bank, which starts at the close of your most recent statement date through the deposit date, or a deposit ticket) matching the dollar amount of the gift.

As always, please contact The Creed Team at Envoy Mortgage in Brookfield or comment below with questions!

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