Denver, CO asked in Banking and Contracts for Colorado

Q: Does underwriting really need transaction history from who is giving a "gift" for FHA

Buying a house and my husband and I don't qualify for conventional - however my father is gifting me money as a graduation gift for down-payment and we have FHA. Underwriting is demanding my father's bank statement with ALL transactions and he will not give up that information non-redacted. Is this normal to need to see his money?

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1 Lawyer Answer
Bruce Alexander Minnick
Bruce Alexander Minnick
  • Business Law Lawyer
  • Tallahassee, FL

A: The mortgage loan underwriting process--especially when it is an FHA government guaranteed loan--will require proof of income from all sources because FHA will not allow borrowers to borrow any of the down payment from any source.

In this case--since you have told the FHA that your father is gifting you the money for the down payment--the FHA underwriters want to be sure that the alleged gift is not really a loan masquerading as a gift. So they want to see your father's bank statements to be sure he has the money available. Advice: Do not fight with the FHA.

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