Ameritrust Mortgage Associates

A lot of buyers think applying online is the easy route.

And sometimes it is… until the system asks a question you are not sure how to answer, your numbers do not fit neatly in a box, or you choose an option without realizing how it affects your payment.

A MORTGAGE APPLICATION IS NOT JUST PAPERWORK. IT IS A STRATEGY CONVERSATION!

The right guidance can help you understand what you qualify for, what your payment may look like, and which loan path actually fits your life.

Message me “APPLY” if you want to walk through the numbers before you click submit.

If we haven’t met yet, I’m Melinda Tallman, your go-to Florida Mortgage Broker!

I see this happen all the time…

Parents generously helping their kids buy a home with gift funds… and then accidentally creating underwriting issues because the money was moved the wrong way first.

So if your parents are gifting you $100,000 toward your home purchase, this post may save you a LOT of stress.

Please do not move money before talking to your Mortgage Broker.

Here’s what I usually tell my clients about gift funds:

1. Talk to me FIRST! Before money moves anywhere.

Not after the transfer.
Not after Venmo.
Not after someone says “I already sent it.”

I need to help guide:
✔ Timing
✔ Documentation
✔ Where the funds should go
✔ How the transfer should happen

2. You will likely need a gift letter. Most lenders will require one.

Usually it includes:
✔ Gift amount
✔ Relationship to donor
✔ Property address
✔ Statement that it is a true gift
✔ Confirmation there is NO repayment expected

3. The paper trail matters A LOT
Underwriting may ask for:
✔ Donor bank statement
✔ Proof funds left donor account
✔ Proof funds were received by buyer or escrow

🚫 Cash is usually a problem
🚫 Large unexplained deposits are a problem
🚫 “It’s from my parents” without documentation is still a problem

4. Transfer the money EXACTLY how your lender instructs
Sometimes it should go:
➡️ Into your account
➡️ Directly to escrow
➡️ At a very specific point in the process

Timing matters more than most buyers realize.

5. Every loan program has different rules
Some programs allow:
✔ 100% gifted down payment

Others may require:
✔ Some borrower contribution

This is why I always tell buyers to ask early.

6. Do not forget reserves
Even with a large gift, some loan programs still require money left over after closing.

7. Quick tax note: ask a CPA. Typically the buyer does NOT pay tax on gift funds.

However, depending on the amount, the person giving the gift may need to file a gift tax form.

That is definitely a CPA question… not a Google guessing game.

The most common gift fund mistakes I see:
❌ Moving money too early
❌ Using cash
❌ Sending funds through random apps
❌ No clean documentation
❌ Calling a loan a “gift”
❌ Waiting until right before closing

Gift funds can be an incredible tool to help someone become a homeowner… but they need to be handled correctly from the beginning.

Save this post and send it to someone whose family may be helping them buy a home.