“My parents want to help us buy.”
Can my parents help with my down payment?
Often, yes. Many loans let gift money from family count toward the down payment. The lender usually needs a signed gift letter and a record of the money moving. Each loan has its own gift rules, so talk to a loan officer before the money moves.
Quick answers
Parents offered to help?
Gift money can often count. Ask before it moves, so the paper trail is clean.
Grandparents too?
Many loans allow gifts from other relatives. Rules depend on the loan.
Does it fit you?
3 quick questions. No signup. No credit pull.
What you'll need
- A signed gift letter
- A record of the transfer
- Your own pay stubs and bank statements
How does it go, start to finish?
Who can give me gift money?
Usually a relative. Some loans also allow a partner or a close friend. Your loan officer checks your loan’s rule before anyone sends money.
What’s a gift letter?
A short note, signed by the person giving the money. It says how much they’re giving and that you don’t have to pay it back. Your loan officer gives you the form.
How should the money move?
Talk to your loan officer first. The lender needs to see where the money came from, so a clean paper trail matters.
Usually that’s a bank transfer or a check, plus a statement that shows the money leaving the giver’s account. Cash handed over in person is hard to document.
Can gift money cover closing costs?
Often, yes. Some loans also ask you to put in some of your own money. Your loan officer tells you your loan’s rule.
When should the gift arrive?
Before closing. Ideally, before you apply. A large deposit right before closing raises questions the lender has to clear. Your loan officer can tell you when to send it.
Can family help in other ways?
Yes. On some loans, a parent can join as a co-borrower. Their income helps you qualify, but they owe the loan too. That’s a bigger step than a gift. Your loan officer can explain the difference to both of you.
Questions people ask
Does a gift have to be paid back?
No. That’s what makes it a gift. The letter says so.
Does the giver need to show a bank statement?
Often, yes. The lender may ask for one that shows the money leaving their account.
Will the gift be taxed?
Usually not. A large gift can mean the giver files a gift tax return. Ask a tax advisor.
Can the gift come from more than one person?
Often, yes. Each giver signs a separate gift letter and shows the money leaving their account.
Can a gift be a loan we pay back later?
No. Money you have to pay back is a loan, and the lender counts it as debt. Tell your loan officer if that’s the plan.
Can the gift go straight to escrow?
Often, yes. Your loan officer can tell you whether your loan allows it.
What if the gift came months ago?
If it’s been sitting in your account for a while, it may count as your own money. Your loan officer tells you what the lender will ask for.
Can I use gift money with Home First Financial?
Yes. Many of the loans we arrange across California let gift money from family go toward the down payment. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
Gift rules depend on the loan and the program. Subject to qualification. Not a commitment to lend.
Also called: gift funds, with a gift letter.
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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