When buying a home, especially a first home, the down payment can seem like the biggest hurdle. While a variety of loan programs can help you make the most of the money you have to put down, you can also use “gifted funds” for your down payment. Gifted funds are funds given to you by your parents or another eligible relative. Certain guidelines exist for this type of down payment, and I am happy to talk with you about those.

Before choosing to use gifted funds, here are a few things to consider:

• Gifts must be provided by a third party not involved in the home transaction


• The donor must be an eligible relative of the borrower


• The seller, real estate agent or mortgage professional cannot provide a down payment gift to the buyer


• A government agency or non-profit organization may provide a gift if it meets the lender’s requirements


• Gift funds require a letter from the donor that documents the amount, date and donor name


• Proof of receipt of gift funds from the donor’s account is required


• Some programs may require the borrower to contribute more than the gift to the down payment

When you are ready, I am more than happy to discuss all of your down payment options for buying a home.