Did you know that you do not need to come up with all of the funds necessary yourself when purchasing your home? Your family can help with a financial gift, as long as it isn’t a loan. When you are purchasing a single-family home as your primary residence there is no limit to how much money Grandma Jean can contribute to your new pad. Not only Grandma, but any member of your family by blood, marriage, adoption, legal guardian, fiance, or even domestic partner can fund any part of the transaction as a gift.
The donor cannot be any interested party to the transaction such as the builder, real estate agent, or other. And the source of the funds must be known and documented just as all other assets and income.
This is a great option for those who do not have enough saved, want to increase their down payment, or even pay points to get their rate down. Many people have family that are willing to help with that first house, or third house; knowing the options surrounding gift funds can help you make a wise decision during your home purchase.