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Author: Mark0Young Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121185  
Subject: Re: Gift Tax question.... Date: 1/8/2002 10:02 PM
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I am hoping that since I am going to my regular bank for my mortgage and that the money is being wired into my account, that they will have al that they need. If not then I shouldn't have a problem coming up with a trail.

The bank would know the money was wired in, but the bank wouldn't know if it were a loan or not.

If this money is going to be used as a down payment and you are starting the paperwork in less than 60 days, you would want to ask for a "gift letter", which is a letter from the party that wired you the money, stating that (1) the money is a gift, and (2) they don't expect any repayment, and the letter should be dated and signed. Let them know a copy of the letter is going to your mortgage company so they don't add anything that they wouldn't want strangers to read.

Generally, if the money is in one of your accounts for over 60 days, the mortgage company considers it "seasoned" and generally doesn't ask where the money had come from. If it is less than 60 days, the mortgage company becomes concerned that it may be a loan, and thus would like something to relieve them of that concern, such as a gift letter, or statement of receiving it as an inheritance, record of sales of an asset.

By the way, the mortgage company would want two years of W-2 statements (or tax return statements if the qualifying income includes non-wage income), two months of bank statements, pay stubs, etc., because they package up that documentation to send to the underwriters.
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