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my husband and i are purchasing a house and we have some friends who are willing to help us with our down payment and in return we can help them with theirs in the future. I was wondering who can give money as gifts to me? is it limited to just family members?

4 Thoughts on who can give money to me for mortgage down payment?
  1. Reply
    chatsplas
    February 13, 2014 at 3:39 am

    You can save up and buy when you have saved up and are ready to do it on your own.

    If others give you money for down payment, they will have to sign a gift letter, that the $ $ are a gift and not to be repaid. The larger the sums, the less likely lender will allow them from nonrelatives as gift. Rules depend on lenders as to whether donors Must be related.

    Saving up for your down payment and building your credit so that you qualify for a good interest rate shows you have learned fiscal responsibility and may be ready for home ownership. The MORE you put down, the Less you pay in interest over the life of the loan. Putting down 20% avoids extra costs of PMI and Greatly reduces amount of interest paid over the life of the loan.

  2. Reply
    the tax lady
    February 13, 2014 at 4:07 am

    If the gifts are substantial, the bank isn’t going to believe these are gifts. They will demand that each friend sign a legal document (not a loan, not to be paid back) *and* provide proof of their bank statements that they could afford to make the gift.

  3. Reply
    jlf
    February 13, 2014 at 4:40 am

    You will have to provide proof that the money is a gift and not a loan. If the lender even suspects that you are borrowing your down paytment, kiss the loan goodbye.

  4. Reply
    JOE
    February 13, 2014 at 4:49 am

    Anyone.

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