Home Purchase Mortgage Calculators
Mortgage Program Calculators
We are not lawyers and do not offer legal advice but when you apply for a mortgage lenders typically require that borrowers provide a "money trail" that demonstrates proof of a gift, be it for a down payment or to pay off an existing debt. Lenders want to verify that the gift funds you received to pay off your debt are not borrowed by your father and are not a loan that you are required to repay. That is why some lenders may require the gift provider (your father) to verify proof of the gift funds in the form of bank statements. Borrower application requirements vary by lender and lenders are typically more focused on the source of gift funds used for a down payment but they may also request verification documentation for a gift used to pay off a debt, which applies to your situation. If you have a legal question about your lender or the application process you should contact a lawyer or the Consumer Finance Protection Bureau (CFPB), which is a government agency that may be able to offer free advice.