09/09/2026
If a family member is helping with your down payment, stop and read this first.
I love seeing families help each other become homeowners.
What I don’t love?
Watching a deal get delayed because someone moved money before talking to their lender.
A down payment gift is absolutely allowed. It just has to be handled correctly.
Here are a few things I tell my clients:
1. Tell your lender BEFORE the money moves.
Seriously. Before the transfer. Before the check. Before anything.
The earlier we know about it, the easier it is to document and keep your loan moving smoothly.
2. Don’t treat it like a casual transaction.
Mortgage lending is all about documentation.
We’ll need to verify where the funds came from and document that they’re truly a gift—not a loan that needs to be repaid.
3. Keep a clean paper trail.
The easier the funds are to trace, the easier underwriting becomes.
This is not the time for mystery deposits, cash, or moving money through multiple accounts.
4. Expect a gift letter.
This is a normal part of the process.
The person giving the gift will sign a document confirming the amount, their relationship to you, and that repayment is not expected.
5. Don’t assume every situation is the same.
Loan programs have different guidelines, and every file is unique.
What worked for your cousin, neighbor, or coworker may not be how your loan needs to be structured.
The takeaway?
If someone wants to help you buy a home, that’s amazing.
Just make your lender the first phone call not the last one.
A five-minute conversation today can save a whole lot of stress right before closing. 🩵
