FHA DOCUMENTAT​ION FOR GIFT INTO ESCROW

The following documents are necessary to fulfill FHA requirements concerning the following:
GIFT DIRECTLY INTO ESCROW

(1) ORIGINAL FHA GIFT LETTER- signed by both donor and recipient (must be most recent version which includes language certifying funds did not come from seller, realtor, etc.).  A fax of the gift letter may be accepted (provided the original will be overnighted directly after the closing) on a case-by-case basis, please call us for an exception.

(2) COPY OF BANK CHECK- made payable to the Settlement Agent's Trust Account (do not make payable to the recipient, or deposit into recipient's account, as this will result in the need for more documentation).

(3) COPY OF WITHDRAWAL SLIP- evidencing that the gift funds originated from the donor's account (or any other conclusive evidence, such as a printout showing the withdrawal of the gift funds, a copy of the passbook showing the withdrawal of the gift funds, a letter from the bank specifying the amount and date of the bank check as well as the owner and account number belonging to the account, etc.).  NOTE:  in no case is a copy of the check alone acceptable, regardless of what information the bank puts on the check verifying its source (See HUD Mortgagee Letter 00-28 for details).

(4) ESCROW LETTER- from the settlement agent (attorney or title company) verifying the receipt of the gift funds into their escrow account.  The letter MUST specify the amount of funds, the date received, the name of the donor, and that the funds were a bank check representing a GIFT.

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