Most loan programs allow for gifts to be given to the borrower to help alleviate costs associated with the loan. A gift letter describing the gift specifics, filled out by the gift donor, is typically a required step. However, different agencies specify slightly different language requirements for the gift letter. For example, FHA requires that the gift letter contain a statement that “…no repayment is required.” FNMA, on the other hand, requires a statement that “…no repayment is expected.” Due to the slightly different language requirements, and the possibility that an FHA loan may be sold to FNMA, we are adjusting the language on our standard Gift Letter (Cx17342) to incorporate the wording for both agencies, as follows:
“I state that no repayment of this gift is expected or required.”
This minor change will be effective immediately. Questions or concerns about this change should be directed towards Client Support at 1.800.497.3584.