Finance
In NJ, a homebuyer who receives a 'gift letter' for their down payment must ensure the letter states:
AThe gift must be repaid within 5 years
BThe funds are a genuine gift with no expectation of repayment✓ Correct
CThe gift giver's net worth
DThe address of the property being purchased
Explanation
Lender guidelines require gift letters to clearly state that the funds are a gift and not a loan—that no repayment is expected or required. Disguised loans (with undisclosed repayment expectations) constitute misrepresentation on a mortgage application.
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