Clay Johnson: Hi. Cheryl Knowlton here, with Castle & Cooke Mortgage, and I’m here with Cheryl Knowlton, from Dynamite Productions. Cheryl, you’ve done the real estate, you’ve done the mortgage side, so you know so much of the stuff with the FHA loans. One of the things we want to talk about is how that 3 1/2% down payment on an FHA loan can be gifted from a-
Cheryl Knowlton: Family member or an employer, but it’s very important that we identify for you where that gift can come from because I used to get a lot of questions about this.
Clay Johnson: Yes, and the important thing on that, it can’t just be Great Uncle Ed or something. It has to be a direct family member, parent, sibling, stepsibling, stepparent, and occasionally if there’s a direct uncle that’s involved there-
Cheryl Knowlton: What about a grandparent?
Clay Johnson: Grandparent can as well.
Cheryl Knowlton: Okay.
Clay Johnson: Yeah, a grandparent can as well. Those are direct family members, but when you start talking about second cousins, yeah, that doesn’t-
Cheryl Knowlton: No 17th cousin.
Clay Johnson: Yeah, yeah, not that far out. The other one that’s kind of interesting is it can be an employer gift as well.
Cheryl Knowlton: As long as they have a-
Clay Johnson: A record and policy that they do that for every employee in that same bracket.
Cheryl Knowlton: Right. You can’t say, “Oh, I like you, and I don’t like you.”
Clay Johnson: Yeah, you know, no. Yeah, exactly. It has to be kind of policy-
Cheryl Knowlton: No soup for you.
Clay Johnson: … that they’ve done that. So yes, you’re exactly right. But the great thing about FHA loans, that we actually use a lot of the time.
Cheryl Knowlton: Fantastic. So, there’s where some of the gifts can come from in terms of the down payment, and we’ll have more on FHA for you in the next episode.