Ask before transferring
Do not move or commingle gift funds until the lender explains the approved method and required documents for the specific program.
Buying a Home
Let us talk about gift funds
Eligible gift funds can help with a down payment or closing costs, but the donor, transfer, gift letter, and paper trail must meet the loan program's rules.
Direct transfer may simplify things
When permitted, a verified wire from the donor to the settlement agent may create a cleaner paper trail. Follow the lender and title company's secure wiring instructions.
Document the gift
A gift letter, evidence of transfer, donor eligibility, and sometimes source documentation may be required. The gift generally cannot be a disguised loan.
Prepare the donor
The documentation can feel invasive. Explain the process upfront and never send sensitive bank information through unsecured email.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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