Using Gift Money from Family for Your Down Payment

It's common for parents, grandparents or other relatives to help with a down payment. Most loan types allow it, but lenders need to see where the money came from and that it doesn't have to be paid back.

How it usually works

• The person giving the money signs a gift letter: their name, relationship to you, the amount, and a statement that it's a gift, not a loan.
• The lender wants a paper trail: the giver's bank statement showing the money, and your statement showing it arrive (or the transfer straight to closing).
• Who can give, and how much of the down payment can be a gift, depends on the loan type. FHA and conventional loans both allow gifts from family for a home you'll live in.

Avoid these delays

• Don't deposit gift money as cash. Use a check or bank transfer so it can be traced.
• Tell your lender about the gift at the start, not right before closing.
• Keep copies of every transfer.

We help families plan this so closing stays on schedule. This article is general information, not financial or tax advice; your lender confirms the rules for your loan, and a tax professional can answer questions about gift taxes.