Escrow Escapes
The Gift Funds Detour: When Family Help Freezes a First-Time Buyer’s Closing
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In a recent deal, a first-time buyer was cleared to close after a relative contributed part of the down payment. Two days before signing, underwriting asked for a complete paper trail: where the money came from, when it moved, and whether the contribution was a gift or a repayable loan. The buyer had already transferred the funds and could not immediately produce every required document, putting…