![]() ![]() In-laws (including parents and grandparents, aunt, uncle brother- and sister-in-law).Cousins (including adopted and step-cousins).Niece or nephew (including step-niece or nephew).Aunt and uncle (including great, step and foster aunt or uncle).Grandparent (including great-grandparents, step and foster grandparents).Sibling (including step-sibling, foster and adopted siblings).Children (including adopted, step and foster children).Fannie Mae and Freddie Mac define family as the following: Most conventional mortgage loans allow homebuyers to use gift money for their down payment and closing costs as long as it's a gift from an acceptable source, such as from family members. Using your gift money with a conventional loanĪ conventional loan is a mortgage that isn't insured or guaranteed with any government entity. This may include asking the donor for a copy of their check or bank account statement. You may also be asked to provide documentation to prove the transfer of the gift into your bank account. When you use gift funds, you have to provide a gift letter that proves the funds are not a loan to be repaid. Lenders are less likely to allow you to use gift money for a down payment if it didn't come from someone close to you. Typically, mortgage lenders look at the exact amount of the gift, where it came from, and the relationship between you and whoever gave it to you. Stipulations of using gift money for your down payment ![]() If you've received a large sum of gift money, it can be beneficial to put some or all of it toward a down payment. If you’re planning to buy a home, you may need to make a large down payment. Saving for a down payment can be a challenge, especially for a first-time homebuyer. Depending on the type of home loan you apply for, and how much money you received, several factors will determine whether you can use the money toward your home purchase. If you're looking to purchase a house and you’re receiving a monetary gift, you might be able to use it for all or some of the down payment or closing costs on your home. ![]()
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