3 ms·

Wow. I seem to recall that I was made to sign a statement by my credit union to the effect that the money from my downpayment was free of all lien, i.e. was an

by athenot 10y ago

Wow. I seem to recall that I was made to sign a statement by my credit union to the effect that the money from my downpayment was free of all lien, i.e. was an asset and not a liability.

pc86 10y ago
When my wife and I bought our house ca 2011 we both had to sign a statement saying that our down payment was our money, was not a loan, and surprisingly was not a gift. They also requested bank records showing the balance. The bank official we were talking to said they had had problems with people getting a family member to "gift" them a large down payment for a house they couldn't afford in the past and you basically had to prove the down payment was your money beyond the fact that you had control of it at signing.
- athenot 10y ago
  Gifts were possible (I received one) but the giver had to also sign a document explicitely stating that they did not require repayment and relinquished all rights to the funds.
  - pc86 10y ago
    I think our bank's concern was that if you needed that gift (in order to lower the mortgage payment by having lower principal or getting rid of PMI or whatever) then you were probably buying too much house in the first place. If 20% of the value of the your home is enough to make it financially infeasible and someone loses their job or gets in a car accident you're in for some rough times.
  - losteverything 10y ago
    Never heard of or thought of that. As an executor of several family members Estates and also friends to others it's very often parents give children money for down payments. Almost always, the assistance in getting the house is subtracted from the disbursement of assets (when they die ) I also don't see why someone can simply change their mind "oh yes, you do need to pay me back" after the documents are already been signed and the house bought.

3 ms·

Wow. I seem to recall that I was made to sign a statement by my credit union to the effect that the money from my downpayment was free of all lien, i.e. was an

by athenot 10y ago

Wow. I seem to recall that I was made to sign a statement by my credit union to the effect that the money from my downpayment was free of all lien, i.e. was an asset and not a liability.

pc86 10y ago
When my wife and I bought our house ca 2011 we both had to sign a statement saying that our down payment was our money, was not a loan, and surprisingly was not a gift. They also requested bank records showing the balance. The bank official we were talking to said they had had problems with people getting a family member to "gift" them a large down payment for a house they couldn't afford in the past and you basically had to prove the down payment was your money beyond the fact that you had control of it at signing.
- athenot 10y ago
  Gifts were possible (I received one) but the giver had to also sign a document explicitely stating that they did not require repayment and relinquished all rights to the funds.
  - pc86 10y ago
    I think our bank's concern was that if you needed that gift (in order to lower the mortgage payment by having lower principal or getting rid of PMI or whatever) then you were probably buying too much house in the first place. If 20% of the value of the your home is enough to make it financially infeasible and someone loses their job or gets in a car accident you're in for some rough times.
  - losteverything 10y ago
    Never heard of or thought of that. As an executor of several family members Estates and also friends to others it's very often parents give children money for down payments. Almost always, the assistance in getting the house is subtracted from the disbursement of assets (when they die ) I also don't see why someone can simply change their mind "oh yes, you do need to pay me back" after the documents are already been signed and the house bought.