If you are one of the lucky ones to have a family member willing to help you buy a home by offering you a gift, then let’s talk before you buy. “Family Member” is defined differently based on the program you select to finance your home. Feel free to contact me with questions. I’m happy to help you finance your dream!
Related Article Title: FHA – Real Estate Agent is “Best Friend” and Wants to “Gift” Commission
Question:
My borrower’s best friend is the real estate agent that sold her the property. The Realtor would like to gift part of their commission to the borrower. Is this allowed? Gift Funds & Gifts of Equity – Chart, We Are Family – How FHA Defines a Family Member – MTP™
Answer:
Unfortunately, only a family member entitled to the commission may give it as a gift. While a close friend is an eligible donor for gifts of cash, they are not eligible to provide commission from the subject transaction as a gift.
Reference:
FHA 4000.1 Manual
Brandon Butler | Posted on January 14, 2020
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