Please please help me close this deal with "gift" money

3 Replies

I am set to close on an investment on July 29th. A few months back my in-laws gave us a check for 20K. I want to use roughly 15K of this to be put toward the 25% down. I didn't realize until yesterday when they told me that I can not use a "gift". So I took the 15K out and made a payment to my HELOC. Now my HELOC has the full funds in it to close. I thought this would work. My lender doesn't think so as it originated from a gift. We are waiting on the final word but she's very doubtful it will work. I thought this would work because the gift was used to pay something off but now it just my equity line.

please help as I don't want to pull from my retirement accounts and pay penalties to close.

any advice would be VERY appreciated!!

I wanted to revisit my post just in case anyone was in a similar panic position.  

It was very big mistake to think that I could drop the cash gift into my HELOC and expect it to work out. Not only did it not work out as i still needed to come up with other funds, it then was stuck in my HELOC and I now have to pay interest on it. Thank goodness this deal had enough cash-flow to cover it.

It was easier than I thought to borrow briefly against my Roth IRA. FYI, don't call it borrowing. I just closed out my account and then redeposited the money a few weeks later. It cost me nothing and the money was in my account 3 days later. You can only do this once a year. I didn't need the money as I stated before but I needed to have the liquid cash sitting in my account. It was easier and quicker to access this money than I thought.

Glad it worked out!   Just a tip for others, when you receive any gift type money, have it in your account for a few months, so it doesn't show being deposited for at least two bank statements (ie. "seasoned") before applying for a loan.  Then, a "mysterious" deposit doesn't have to be explained

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