Chapter 4
IN THIS LESSON
Understanding Gifted Funds
Family support can sometimes help bridge the gap between where you are financially and where you want to be as a homeowner. Learn how eligible gift funds can potentially be used toward your home purchase.
You'll learn: What gifted funds are, who may be able to provide them, how documentation works, and important guidelines to understand when using gift funds.
Gift Funds: Using Family Support
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Depending on the loan program and property type, eligible borrowers may be able to use gift funds from qualified family members toward their home purchase.
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Gift funds may be used for:
Down payment
Earnest money deposit
Closing costs
Paying off certain debts to help qualify for the mortgage
All applicable gift documentation and program requirements must be satisfied.
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Gift funds may be permitted when purchasing a primary residence or second home. Gift funds generally cannot be used for investment properties.
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Depending on program guidelines, eligible donors may include:
Spouse or domestic partner
Fiancé(e)
Parents, including step, foster, or adoptive parents
Children, including step, foster, or adopted children
Siblings, including step, foster, or adopted siblings
Grandparents and grandchildren
Aunts, uncles, nieces, and nephews
Cousins
In-laws
Future in-laws
Godparents
Relatives of a domestic partner
Former relatives
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Family support can help make homeownership more achievable for qualified buyers. Understanding who can provide gift funds, how they can be used, and what documentation is required can help you take advantage of this potential resource.
Gift-fund eligibility and donor requirements vary by loan program and borrower circumstances. Always confirm current guidelines for your specific loan.