Gift Funds may be provided by the FHA mortgage applicants employer or labor union. Any gift of the FHA mortgage applicants required minimum investment must also comply with the additional requirements for Source Requirements of FHA mortgage applicants Minimum Required Investment (MRI) found in Handbook 4000.1.
The Mortgagee must obtain a gift letter signed and dated by the donor and Borrower that includes the following:
• the donor’s name, address, and telephone number;
• the donor’s relationship to the Borrower;
• the dollar amount of the gift; and
• a statement that no repayment is required.
The receipt of the gift funds must be documented in accordance with Handbook 4000.1
A salary advance cannot be considered as assets to close.