Gifts as a Down payment

For many buyers, especially first time buyers, saving up the funds for the down payment can be a seemingly insurmountable hurdle. This does not have to be the case. As your mortgage originator we can help you find acceptable, yet, creative ways to qualify your down payment.

Using a gift for your down payment

One way to fund a down payment is by using a gift. For many loan programs, a gift may be used for a portion or all of the required down payment.  Money given as a gift for a down payment can’t come from just anyone.  Family members are the usual source.  And sometimes an employer may also be acceptable.   If this is an option available to you, please let us know.  We can help you determine which loan programs accept gift funds for down payments and whom is an allowable donor.   We can also supply the gift letter that the donor is required to sign.  The gift letter will state the funds are an outright gift and will not require repayment. 

Service persons and veterans may qualify for a VA Loan that requires no down payment.  VA Loans are guaranteed by the U.S. Department of Veterans Affairs.  In addition to no down payment, these loans usually offer a competitive fixed interest rate and limited closing costs.  While the VA does not issue the loans, it does issue a certificate of eligibility required to apply for a VA loan guarantee.

There are also private sector alternatives that may, on a case by case basis offer 100% financing of the properties purchase price.  Let us help you qualify your down payment and the mortgage alternative that’s right for you by calling 610-398-9500.