When odds to win premier league 2015 funds from retirement accounts are used for reserves, Fannie Mae does not require the funds to be withdrawn from the account(s).
A gift of equity is permitted for principal residence and second home purchase transactions.
Note: Refer to FHA Gift Funds policy for FHA acceptable donor requirements.Documents that demonstrate a history of borrower and donor shared residency.If the secured second mortgage or unsecured loan does not require regular payments of either principal and interest or interest only, the lender does not need to calculate an equivalent payment for consideration as part of the borrowers monthly debt.A borrower of a mortgage loan secured by a principal residence may use donated gift or grant funds from acceptable entities to fund all or part of the down payment, closing costs, or financial reserves subject to the minimum borrower contribution requirements below.
Examples of personal unsecured loans include signature loans, lines of credit on credit cards, and overdraft protection on checking accounts.
V ested funds from individual retirement accounts (IRA/SEP/Keogh accounts) and tax-favored retirement savings accounts (401(k) accounts) are acceptable sources of funds for down payment, closing costs, and reserves.
See fnma 2013 Selling Guide, B3-6-05, Monthly Debt Obligations, for more information about how to treat the resulting contingent liability.
Depending on the significance of the funds in question, the lender may accept alternatives to this required documentation, particularly when the proceeds of the sale represent a minor percentage of the borrowers overall financial contribution.The documentation must be included in the individual mortgage file.What I believe is that most exciting change is that they no longer have the flex 97 program.Personal unsecured loans are not an acceptable source of funds for the down payment, closing costs, or financial reserves.Documentation Requirements The lender must document the following: The borrowers ownership of the asset, The value of the asset, as determined by an independent and reputable source, The transfer of ownership of the asset, as documented by either a bill of sale or a statement.There has been some recent excitement about Fannie Mae (fnma) changing her guidelines on down payments and allowing gift funds as an acceptable form of down payment in lieu of a borrowers own funds.Determining the Amount of Net Proceeds S ales Price Established?However, lenders must exercise caution when considering retirement accounts as effective reserves because these accounts often are in the form of stocks, bonds, or mutual funds; feature significant penalties for early withdrawals; allow limited access; or have vesting requirements.