I’m going to the Greater Milwaukee Association of Realtors (GMAR) Brewer game outing today, so it feels like Christmas in May at the Rates in Motion studio.

Since I’m feeling festive, not only am I going to talk about gift funds, but I want to give you the Rates in Motion LoanApp to use on your smart phone. For free. If you have an iPhone, Android, or Blackberry smart phone, you can use the calculators, daily rate updates, and other cool features in the Rates in Motion LoanApp by going to your smart phone and clicking on this link. The activation code is: 9203780002

Ho, Ho, Ho!

Let’s talk more about gifts. It’s the busy time of year for buying homes and I want to talk about using gift money for your down payment. If you have nice parents or other immediate family members that have extra money laying around, they can help you with the down payment needed for a home loan these days. However, there are a few things you should know…

Find out more in today’s video:

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(Watch it on your mobile phone or email reader here)


Realtors, my videos can help your borrowers out and make you look like a star. Don’t be afraid to share. Don’t be like this guy: Click here to meet the most worthless Realtor in the world

Back to the main topic. The biggest thing to know is that all gift funds have to be from an actual immediate family member. It might be a little weird if your brother’s girlfriend’s parent’s neighbor is borrowing you the money for your down payment. That’s not going to work. Let’s go over what is needed in the transaction if you plan on using gift funds.

Standard Conventional Mortgage

This one can be confusing. On a standard conventional mortgage, you must either receive a gift for a full 20% down payment from a family member with none of your own funds in the transaction OR you need to contribute at least 5% of your own funds and get a gift for everything else.

Basically, this means that if you have Really Really nice parents or other family members, you don’t need any of your own funds. If you have just have Really nice parents, you’ll need 5% of your own funds.

FHA Mortgage

Luckily the FHA guidelines are simpler and you can use any combination of gift funds with your own funds. There is no set percentage.

Mortgage Bonds are in the negative territory today and again testing the 200 day moving average. We have seen some resistance here over past few weeks. Its going to take some major news to break through that ceiling of resistance. New homes sales are up 7.3% in April. That’s better than expected.

Mortgage Bonds are in the positive territory and again testing the 200 day moving average. Debt concerns in Europe are again helping bonds get a boost today.

Today’s rates with no lender fees are 4.5% on a 30 year fixed, 3.75% on a 15 year fixed, and 3.0% on a 5/1 ARM. Click here to get the details and other rates I found today with NO lender fees.

Please don’t forget to share today’s episode and let’s change the way people shop for a mortgage…forever!

See you tomorrow!

– Mike


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