Finance
A Kentucky homebuyer who receives 'gift funds' for a down payment from a family member must provide the lender with a:
APromissory note for repayment
BGift letter stating the funds are a gift and not a loan requiring repayment✓ Correct
CTax return showing the donor's income
DKREC-approved gift documentation form
Explanation
Lenders require a gift letter from the donor confirming that the funds are a true gift (not a loan) that the buyer is not obligated to repay, since the debt would affect the buyer's DTI ratio.
Related Kentucky Finance Questions
- A Kentucky seller who receives a full-price offer but does not want to sell may legally:
- Kentucky's mortgage recording tax is charged when:
- A Kentucky construction loan converts to a permanent mortgage upon:
- The annual percentage rate (APR) on a mortgage is typically higher than the stated interest rate because it includes:
- The Kentucky Housing Corporation (KHC) provides:
- An adjustable-rate mortgage (ARM) in Kentucky has an initial rate of 4% with a 2% annual cap and a 6% lifetime cap. If the initial rate is 4%, the maximum rate after 3 years is:
- Kentucky buyers using FHA financing must pay mortgage insurance premiums (MIP) which include:
- A borrower takes out a 30-year fixed-rate mortgage of $240,000 at 6% annual interest. What is the approximate annual interest in the first year?
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →