How to Use Gift Funds when Buying a Home
It is very common to use “gift funds” to help with the down payment and closing costs when buying your first home.
When someone cares enough about you to give you money to buy a home, you don’t want to inconvenience them during the process.
In this episode, Josh and I explore the most important things you need to know if you are receiving a gift for your home purchase, including acceptable gift sources, and how to properly document those funds to avoid last minute stress and headaches.
Documentation requirements may vary depending on the type of loan you are using, so it’s important to let your loan officer know as soon as possible that you intend to use gift funds as early in the process as possible.
Links and Resources
Below you will find links Gift Funds guidelines for Fannie Mae and Freddie Mac Conventional, as well as FHA, government insured financing. While gift funds are allowed with VA and USDA loans, because there is no down payment required, it’s less common.
Gift Fund Guidelines
- Fannie Mae Conventional Gift Funds Guidelines
- Freddie Mac Conventional Gift Funds Guidelines
- FHA Gift Fund Guidelines
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