How do I use a gift from a family member to buy a home?

Getting a gift from family to help with your down payment and closing costs is perfectly fine, and there’s an easy way to handle it!

When using Conventional or FHA financing, the person gifting the funds should wire them directly to the title company handling the transaction. We’ll then need a gift letter (which I’ll provide for all parties to e-sign) and proof that the funds were wired to the title company.

If the funds are transferred between the giver’s and recipient’s bank accounts instead, we’ll need to collect bank statements from the family member, which can complicate the process. Wiring the funds directly to the title company keeps everything simple and straightforward!