Dear Homebuyer,
If you’re thinking about buying a home but are concerned about having enough money for your down payment, you may be wondering if a family member can help. In many cases, the answer is yes. Gift funds from an eligible family member can potentially be used toward your down payment and certain closing costs, depending on your mortgage program.
The important part is making sure the gift is properly documented. Your lender may require a gift letter confirming that the money does not need to be repaid, along with documentation showing where the funds came from and how they were transferred.
If a parent, grandparent, or other eligible family member is planning to help with your home purchase, it’s best to talk with your loan officer before the money is transferred. Moving funds without proper documentation can create additional questions or delays during underwriting.
Gift money can make homeownership more attainable, especially for first-time buyers who may have the income to qualify but need additional help with upfront costs. Understanding the rules ahead of time can make the process much smoother.
If you’re considering buying a home in California and your family is willing to help, The Harris Team can walk you through your options and help you understand what may be possible for your specific situation.
