{"id":187,"date":"2021-11-24T16:26:16","date_gmt":"2021-11-24T16:26:16","guid":{"rendered":"https:\/\/ebwmtg.com\/blog\/?p=187"},"modified":"2021-11-24T16:26:17","modified_gmt":"2021-11-24T16:26:17","slug":"using-gift-money-for-a-down-payment","status":"publish","type":"post","link":"https:\/\/www.ebwmtg.com\/blog\/using-gift-money-for-a-down-payment\/","title":{"rendered":"Using Gift Money for a Down Payment"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

Did you recently receive a monetary gift and want to use it toward a down payment? That extra cash might be helpful when exploring options in making that initial up-front parital payment. Gift money could be the extra boost you need to achieve homeownership.<\/p>\n\n\n\n

Gift money can come from relatives, defined as the borrower’s spouse, child, or other dependent; another individual related to the borrower by blood, marriage, adoption, or legal guardianship; or a fianc\u00e9 fianc\u00e9e, or domestic partner.<\/p>\n\n\n\n

Gifts can also be accepted from non-relatives, including close family friends. Ensure the money is coming from someone you trust and will not create any conflict in the future.<\/p>\n\n\n\n

Today’s prospective home buyers generally struggle to save funds due to rising rental costs, student loan debt, and other financial burdens \u2013 not to mention the steady rise in housing. Therefore, the quickest path to homeownership is to utilize gift money.<\/p>\n\n\n\n

To avoid mortgage insurance on a conventional loan, a 20 percent down payment is required. To overcome this challenge, gift funds or other loan options can offer a more flexible down payment. Sellers, realtors, or brokers are ineligible to gift funds to potential borrowers.<\/p>\n\n\n\n

Before accepting the monetary gift, ensure the borrower and gift-giver both fill out a formal document detailing the following information:<\/p>\n\n\n\n