Finance
A Pennsylvania borrower who receives a gift for their down payment must:
ARepay the gift immediately after closing
BDocument the gift with a gift letter from the donor confirming no repayment is required✓ Correct
CPay taxes on the gift amount before closing
DUse only gifts from immediate family members for FHA loans
Explanation
Lenders require a gift letter signed by the donor confirming: the amount of the gift, the source of funds, and that repayment is not expected or required. Without a gift letter, lenders treat the funds as a loan, adding to the borrower's debt obligations. For FHA loans, eligible donors include family members and certain organizations.
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