Hey all, my fiancé and I are house hunting, and he’ll be the one on the mortgage since I’ve been a stay-at-home mom for three years. I have a little over $100k saved in a CD from my grandparents, and I’m considering giving him $25-30k if we find a house slightly above his budget. Does anyone know how banks handle this? I’ve heard that wiring it directly to his account might look suspicious. Any advice on the best way to do this?
You can definitely gift him the money. Easiest way is to transfer it directly to the title company rather than moving it through multiple accounts. Since you aren’t married, they may ask for details on your relationship, or it might not be needed if you’re listed on the deed.
Just a word of caution—buying property together before marriage can be tricky. This forum is full of stories about couples breaking up and being stuck with big financial messes because of it.
Since you’re engaged, you can gift him the amount. It’s pretty simple; you just need a gift letter and proof of the transfer.
Unless it’s a government loan, you should be fine being on the deed. You’ll need to sign a gift letter stating there’s no expectation of repayment. Should be no issue, even if you transfer the funds tomorrow.
@Suki
Thanks for sticking to the actual question instead of giving relationship advice!
Jem said:
@Suki
Thanks for sticking to the actual question instead of giving relationship advice!
Glad to be of help!
If you’re giving him money, you should also be on the deed as a co-owner. You’ll need a gift letter, and the bank may want proof that the CD was cashed out.
Make sure to get on the deed, and if you’re putting in more than him, consider having a bigger share in the house.
Vesper said:
Make sure to get on the deed, and if you’re putting in more than him, consider having a bigger share in the house.
He’s covering almost 20%—he’s been the sole provider and never held back financially for me. I can’t be on the loan due to other debts, but this money from my grandparents was always meant for things like this. I’m lucky I don’t have to use all of it because he’s saved up more than double what I have.
@Jem
I meant being on the deed, not the loan itself.
@Jem
To protect yourself and your kids, you should definitely be on the deed, especially since you’re not married. If something happens to him, having ownership means the house goes to you, no questions.
@Hollis
Thanks, but this question isn’t about going on the deed.
Jem said:
@Hollis
Thanks, but this question isn’t about going on the deed.
You’ll need a gift letter. The lender will tell you what it should include. You won’t be on the loan, so you’re just a non-borrowing partner. But being on the deed is key in case things go south; it’s a safeguard for you.
Do you only work in NY?
Do you only work in NY?
I’m licensed in all 50 states.
Great! I have a few credit issues to sort out and will be reaching out soon!
@Sky
Looking forward to it! Feel free to email or call with any questions.
Ignore that advice; too complicated. Just let your loan officer know you’re gifting the amount and plan to wire it to the title company at closing. When the gift letter asks for the source, mention ‘wire to title’ or ‘cashier’s check to title.’ At closing, the lender will either want the wire confirmation or a copy of the cashier’s check. If you go with a cashier’s check, make sure your name is listed as the remitter.