FAQs (commonly ask quesions and topic)
Marijuana
In Illinois recreational marijuana is legal. However, it is still against the law federally. Since most banks are federally insured they can not do a mortgage for you if you work in the Marijuana industry. Government-backed loans have stricter limitations, including limitations on what qualifies as an acceptable source of income when qualifying for your loan. Because conventional mortgages aren’t backed by the U.S. government, acceptable income sources aren’t nearly as limited when you apply.
Crypto Currency
Cryptocurrency can be used as a source of funds for a mortgage transaction when converted to U.S. dollars and deposited into an eligible asset account. All assets must be verified in accordance with Fannie Mae B3-4.2-01, Verification of Deposits and Assets (07/07/2021) or Freddie Mac 5501.3 Asset eligibility and documentation requirements The source of a large deposit may be from cryptocurrency, provided there is documentation to show the funds came from the digital currency account owned by the borrower. .
Gift Funds
Can you use gift funds to help with your down payment or closing costs? The general answer is yes. However, the allowable donors and the process to accept funds vary for each loan program.
Conventional Loans
Acceptable Donors
-Spouse
-child/other dependent
-Individual related to the borrower by blood, marriage, adoption, or legal guardianship
-Fiancé/fiancée/domestic partner
-Former relative (ex-spouse, godparent, a relative of a domestic partner
-Donor of gift may not have affiliation with builder, developer, agent, or any other interested party
FHA
Gifts may be provided by:
• the Borrower’s Family Member;
• the Borrower’s employer or labor union;
• a close friend with a clearly defined and documented interest in the Borrower;
• a charitable organization; or
• a governmental agency or public Entity that has a program providing homeownership assistance to:
o low or moderate income families; or
o first-time homebuyers.
The gift donor may not be a person or Entity with an interest in the sale of the Property, such as the seller, Dealer, manufacturer, real estate broker or any person or any other affiliated Entity.
USDA and VA
Gifts are acceptable to USDA. Gifts may not come from any source that has an interest in the sale of the property (seller, builder, real estate agent etc.). Gift funds must be properly sourced and include; gift letter, evidence funds from the party providing the gift and evidence funds were deposited into the applicant’s account. Cash on hand is not acceptable.