Wedding Gifts May Be Considered Acceptable Mortgage Funds
Many borrowers receive substantial monetary gifts from family and friends during wedding celebrations. One common concern borrowers have is whether those large deposits can be used toward a mortgage transaction. The good news is that in many cases, funds received as wedding gifts may be considered acceptable. A recent marriage does not automatically create a problem when documenting large deposits.
Wedding Gift Funds May Be Allowed Within 90 Days Of Marriage
Mortgage guidelines may allow large deposits from unrelated persons when the funds are tied to a wedding. If the deposits stem from wedding gifts and are received within 90 days of the date listed on the marriage certificate or marriage license, those funds may be considered acceptable for qualifying purposes.
This can be extremely helpful for newly married borrowers who are purchasing their first home, combining finances, strengthening reserves, increasing available assets for closing, and preparing for a larger down payment. Proper documentation is critical when large deposits appear on bank statements.
Many borrowers become concerned when underwriters question recent deposits appearing in their bank accounts. However, not every large deposit creates a financing issue. When the funds are clearly tied to a wedding and supported by the marriage license or certificate, lenders may allow those assets to remain eligible. This is especially important for borrowers who have recently had these instances.
- Opened joint accounts
- Combined savings
- Deposited wedding checks
- Received cash gifts from guests
- Received contributions from family and friends
Sometimes, the right guidance is simply knowing how to document the story behind the deposits properly. Contact us so we can help you qualify for a mortgage loan.
