Finance
A Mississippi homebuyer's loan application includes a 'gift letter' from a parent providing $15,000 toward the down payment. For mortgage purposes, a gift letter must state:
AOnly the amount of the gift
BThat the funds are a gift, not a loan, and do not need to be repaid — the gift giver's relationship to the buyer, source of funds, and signature are typically required✓ Correct
CThe parent's tax identification number
DThat the gift is conditioned on the buyer maintaining the property
Explanation
Mortgage underwriters require gift letters to confirm that down payment funds are truly a gift and not a disguised loan (which would affect the debt-to-income ratio). The letter must state the amount, the relationship of the gift giver, that no repayment is required, and is typically signed by both donor and recipient.
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