THE MENSER REAL ESTATE GROUP BLOG
Gifting a Down Payment for a House
Coming up with the down payment can be the biggest hurdle to buying a home. If you’re lucky, your parents, grandparents or other relatives will gift you a down payment.
The amount given often depends on the type of mortgage and your credit score. An FHA loan, for instance, can be approved if you have a low credit score and can only require a down payment of 3.5 percent if your credit score is between 580 and 619.
The lower your credit score, the more money you must put down yourself from your own income, with less being given as a gift. If your credit score is below 580, a 10 percent down payment at minimum is required for an FHA loan. If you put down 20 percent or more, the entire down payment can be a gift.
Conventional loans, such as Fannie Mae or Freddie Mac loans, allow the entire down payment to be a gift if you’re putting down 20 percent or less of the home’s purchase price.
Down payment funds also have other rules, starting with a down payment gift letter that’s required by the lender to document the gift. It isn’t a standard form, but can be written by you. You can get help writing this letter from your real estate agent or broker.
Gifts are only allowed from family members, not friends. The letter should include the name and address of the person making the gift, the amount, address of the home you’re buying, the relationship of the giver, what type of account the money’s coming from and a clear explanation that the money is a gift, not a loan.
Documented proof will also be needed as to where the gift is coming from and that you’ve received it. This can be a bank statement or copy of a canceled check made out to you, or a brokerage account statement if investments are sold to raise the cash. The money you receive should be put into a separate account apart from your checking or savings.
Tax implications should also be considered—not by you as the person receiving the down payment gift, but by the person making the gift to you.
While tax laws are apt to change annually, it’s important for anyone gifting down payment funds to speak with a tax professional to understand exactly how the process works.
1149 Grey Fox Court, Folsom, CA 95630
Exceptional single-story 1,604 square-foot residence in the Parkway, ideally located near schools, shopping, dining, and across the street from a nature trail. Built by Parker Development in 1997, this 3 bedroom home features 2 bathrooms and a 2 car garage. The gourmet kitchen overlooks the family room with a fireplace and picturesque windows. The dining room and formal living room feature cathedral ceilings. The master suite presents a spa-like bathroom with dual sinks, shower stall, and a soaking tub. Two additional bedrooms with new carpeting and a spacious bathroom complete the home. Entertain guests at a Summer cookout on the spacious back patio and lawn area.
Listed at $498,000
How to Be a Good Neighbor and Set a Positive Example for Others
Bad neighbors don’t have to be a nightmare. Setting a good example yourself and working with your neighbors in a respectful way can solve problems before they happen.
Here are some ways to be a good neighbor.
Start by making sure you’re not the person that’s driving everyone nuts. Before you can ask someone else to turn their loud music down or keep their dogs from barking all night, you can be a model homeowner and make sure you’re not doing the things you don’t want your neighbors doing.
These include keeping your home well maintained so it isn’t an eyesore, respecting property lines and not having your fences or trees encroach on a neighbor’s property, and not seeking minor revenge for problems.
It can also help to develop a friendly relationship with your neighbors. Introduce yourself and establish a friendly rapport so that if a problem arises, you can resolve it easily. You can also be a good neighbor by volunteering to collect a neighbor’s mail when they’re on vacation. It’s also a good idea to be proactive and tell neighbors ahead of time if you’re doing a renovation or anything else that will create a lot of noise.
When approaching someone with a complaint, go into the conversation with the idea that they have good intentions and may not realize that what they’re doing is a problem.
Your initial complaint may elicit a complaint by your neighbor about you, so take it as constructive criticism and be thankful for the help in resolving an issue that you may not have realized is causing a problem for someone else.
Problems can escalate, making this a good time to involve a third party. A homeowners association, neighborhood group, city building department, animal control, code enforcement, police or an attorney could help. To help other people deal with the issue, document the problem with photos, emails, texts and other facts.
Your HOA, police and other groups may require a formal complaint. Do your research and know what the neighborhood and city rules are before going this far, and do everything else you can to resolve it yourself. The police should be your last resort.
If none of this works, you should still avoid the temptation to do things that will upset the neighbors. Continuing a feud will not help matters. Don’t leave your barking dogs outside all day, for example, or crank up your music as a way to get revenge. Doing these things could lead to you being the neighbor everyone despises.
How to Keep Your Water Heater Working Efficiently
Many homeowners don’t think about water heater maintenance as much as they should.
Check the temperature-pressure relief valve. If it doesn’t release water or releases too much, replace it.
Sediment can clog water lines, making the water heater less efficient and shortening its lifespan. Flush the water heater twice a year.
Set the temperature to 120 degrees Fahrenheit. Set it as low as possible or turn off the water heater if you will be away for several days.
Insulate the pipes, TPR valve and temperature control.
Check the pilot flame and relight it if necessary.
Focus on routine maintenance to avoid a hefty bill for a new water heater.
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We helped our client purchase this Serrano home at a favorable price after it had been on the market for several months. When her relocation plans changed, she needed to sell without being here to manage the process.
The Menser Real Estate Group handled the preparation, staging, marketing, and negotiations, coordinating the details locally for our out-of-area client.
Our listing received two offers in just two days on the market. Approximately five months after her purchase, the home sold for $100,000 more than she had paid.
From purchase to resale, our team provided the local knowledge and hands-on support she needed as her plans changed.