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🏡 Can Family Help Me Buy a Home? More Than You May Think.
- Jacqueline OShaughnessy
- Jul 7
- 4 min read
By Jacqueline O'Shaughnessy, Loan Officer / Private Capital, NMLS #382900 — South Wind Financial, Inc, NMLS #9462 — Las Vegas, NV
Homebuyer Money-Saving Series | Part 4:
Who This Guide Is For
You've found a home you'd love to buy, but you're worried about coming up with enough money for the down payment or closing costs. Your parents, grandparents, or another family member has offered to help, but everyone is asking the same question:
"Is that even allowed?"
The answer is often yes. Many homebuyers receive help from family members when purchasing their first home.
The Problem
Emily and Jason had good jobs and qualified for a mortgage.
The only thing standing between them and homeownership was the money needed to close. Emily's parents wanted to help by contributing toward their down payment, but everyone was worried it might cause problems with the loan. Instead of guessing, they spoke with their mortgage professional and learned there were options available. That conversation helped them become homeowners much sooner than they expected.
The Doubts
Many buyers ask:
Can my parents give me money for a down payment?
Can family help with closing costs?
Does the money have to be a loan?
Will I have to pay taxes?
Can a family member co-sign for me?
What documentation will I need?
These are excellent questions because every loan program has its own guidelines.
Ways Family May Be Able to Help
Depending on the loan program and your qualifications, family assistance may come in several forms.
These may include:
Gift Funds. Many loan programs allow eligible family members to provide gift funds toward your down payment and, in some cases, closing costs.
The funds generally require documentation showing they are truly a gift and not a loan.
Helping with Closing Costs. Family members may also be able to contribute funds that help reduce the amount of cash you need at closing, depending on the loan program and underwriting guidelines.
Co-Signing. In some situations, a qualified family member may be able to co-sign the mortgage.
Family Sales. Sometimes parents or grandparents sell a home directly to a child or grandchild.
Depending on the circumstances, there may be unique financing opportunities available.
Planning Ahead Makes the Process Easier
One of the biggest mistakes buyers make is transferring money before speaking with their lender. Mortgage guidelines often require documentation showing where funds came from.
By discussing your plans early, your mortgage professional can explain what documentation will be needed and help prevent delays during underwriting.
The Solution
Family support has helped many first-time buyers achieve homeownership.
The key is making sure the assistance is structured correctly and documented according to your loan program's requirements.
A little planning today can make the mortgage process much smoother tomorrow.
Frequently Asked Questions
Can my parents give me money for my down payment?
Yes. Many mortgage programs allow eligible family members to provide gift funds for a down payment, subject to program guidelines.
Can gift money be used for closing costs?
Depending on the loan program, gift funds may also be used toward eligible closing costs.
Should my family transfer money before I apply?
It's generally best to speak with your mortgage professional first so you understand the documentation requirements before any funds are transferred.
Can a family member co-sign my mortgage?
In some situations, yes. Whether this is an option depends on the loan program and the financial qualifications of everyone involved.
Mortgage Terms
Gift Funds: Money provided by an eligible family member to help purchase a home. Documentation is typically required to verify that the funds are a gift rather than a loan.
Co-Signer: A person who agrees to share legal responsibility for the mortgage loan.
Closing Costs: Expenses associated with completing the purchase of a home, separate from the down payment.
Key Takeaways
Family members may be able to help with a down payment or closing costs.
Gift funds are permitted under many loan programs when properly documented.
Every loan program has specific requirements for family contributions.
Planning ahead helps avoid delays during underwriting.
A mortgage consultation can help determine the best way to structure family assistance.
Continue Your Homebuying Journey
If a family member has offered to help you buy a home, don't leave anything to chance. Let's discuss your financing options before money changes hands. I'll help you understand what documentation is needed and which loan programs best fit your situation. Sometimes a simple conversation today can save weeks of delays later.
Schedule a complimentary consultation or start your online application today.
All my best
Jacqueline O'ShaughnessyLoan Officer/Private Capital
South Wind Financial, Inc
6655 W. Sahara Ave., suite D114
Las Vegas, NV 89148
702-429-3994 cell
702-543-7535 eFax
Company NMLS #9462
Agent # 382900
Agent license #6603
CA-DFP1382900
AZ 1032777
FL L0101736
There is so much great information “packed” into Jacqueline’s blog posts!! I find myself coming back time and time again as I look for answers to my questions regarding financing and costs involved in buying a property. I am able to navigate through the topics I’m interested in and always find the answers there. Thank you.