How to Use Gift Funds on Your VA Home Loan

The VA home loan program provides many benefits to its borrowers, particularly no down payment requirement and no cap on how much sellers can pay towards closing costs. However, sellers may not agree to pay for all of the costs. In addition to the potential closing costs, VA borrowers have other fees such as the VA Funding Fee that have to be paid before the loan can close. If you are looking to close a VA loan and in the need for cash, you can use gift funds. Gift funds are monies that you get as a gift from someone else such as a family member. You will need a letter to verify the gift funds. Like VA loans, there are requirements for other home loans. Be sure to check into the loan you are applying for to be clear on any requirements. Read the full article here: