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Buying a Home with Gift Funds? Here's What You Need to Know

With home prices and mortgage rates remaining high, many homebuyers are turning to family members for financial help.

Gift funds from close family members are often accepted by lenders, provided the buyer has some cash in their savings or other accounts.

Lenders generally want to be sure that buyers have a financial cushion and can make their mortgage payments on their own.

“Buying a home and using gift funds is great,” said Melyssa Caban, a New American Funding branch manager based in Kissimmee, Fla. “However, a lot of times lenders do require you to have some funds of your own.”

Melyssa Caban NMLS# 737510