Finance
A Kentucky homebuyer receives a gift of $20,000 from their parents for a down payment. The lender will typically require:
AThe parents to become co-borrowers on the loan
BA gift letter stating the funds are a gift with no expectation of repayment✓ Correct
CProof that the parents have no liens on their own home
DThe gift to be deposited at least 12 months before application
Explanation
Lenders require a gift letter confirming that the down payment funds are a true gift (not a loan requiring repayment) from an acceptable donor. The letter must state the amount, donor's relationship to borrower, the property address, and confirm no repayment is expected.
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