Gifts/Down Payment Overlay Removal
Effective with Best Efforts loans locked and Mandatory Commitment taken on or after January 4, 2016, Chase has removed the down payment overlay and updated Eligible Funds section in the Agency Amortizing ARM, Fannie Mae Amortizing Fixed and Freddie Mac Amortizing Fixed guides to indicate:
Gifts permitted for Primary Residence and Second/Vacation Homes:
- 1 Unit Primary Residence: Gift funds may fund all or part of the down payment and closing costs
- 2-4 Unit Primary and 1 Unit Second Homes: Minimum 5% from borrower’s own funds required for LTV/CLTV/HCLTVs >80%
See CB15-67 for additional details.