The simple, stress-free way to use gift money for a home purchase.

FHA Gift Fund Rules, Documentation Requirements, and Approved Donors for Smooth Mortgage Closings

A SAM is usually a second mortgage that stays “silent.” That means no interest, no monthly payments, and repayment only happens when the home is sold or transferred. When that time comes, you pay back the original loan plus a share of any increase in your home’s value, called appreciation.

Over the years, I’ve heard countless people say the same thing: “I’d buy a home if I could just save for the down payment.” It’s not an excuse, it’s a real challenge. Between rising costs and everyday bills, most families find it difficult to save enough to get started. That’s why down payment assistance programs are so important.

Welcome to part two of our asset series. This time, we’re diving into allowable funds: the money you’ll use for your down payment and closing costs. These funds need to be verified, seasoned, and ready to go when it’s time to close. And while it’s easy to assume that money is money, mortgage underwriters see things differently.

When applying for a mortgage, we tend to focus first on income and credit scores. But there’s another essential piece of the puzzle: assets. This week, we’re going to walk through the different types of asset accounts, why having assets is non-negotiable in the mortgage process, and what documentation underwriters like me need to see to verify them.