Did You Know That Conventional And FHA Differ On Allowing A Gift Provided By The Borrower’s Employer?

Fannie Mae and Freddie Mac both have similar language regarding Employer assistance. Both Agencies state it must be an established assistance program for ALL employees and not a special accommodation for a specific Employee(s). Documentation verifying the Employer Assistance Homeownership ( EAH) program is required.

Or the funds given CANNOT be used.

FHA allows one-time gifts from Employers or the Borrower’s labor union. The Employer will need to provide a gift letter and a recent business bank statement to show Donor ability for the gift. Refusal to do so will invalidate the fund gifts.

Contact one of our loan consultants to learn more.