Buying a Home with Gift Funds: What You Need to Know
Did someone offer to help with your down payment? Gift funds can be a powerful tool for homebuyers—especially first-time buyers in Queen Creek, AZ. Here’s how to use them the right way.
What Are Gift Funds?
Let’s say your parents, grandparents, or a generous friend wants to help you buy a home. That financial help is called a gift fund—money given to you with no expectation of repayment. In the world of mortgages, that’s a big deal—and a very welcome one!
Gift funds can be used for:
Down payments
Closing costs
Sometimes even reserves, depending on the loan program
The best part? Gift funds can make the difference between waiting to buy a home... and holding the keys to one now.
Who Can Give Gift Funds?
Not just anyone. Most loan types (FHA, VA, Conventional, etc.) have rules about who qualifies as a donor. Typically, eligible donors include:
Family members (parents, siblings, grandparents, etc.)
Fiancés or domestic partners
In some cases, close friends with a documented relationship
Your best friend from high school who you haven’t seen in a decade? Probably not going to fly with the underwriter.
Gift Letter Required
No, your grandma can’t just Venmo you money and call it good.
When using gift funds, the lender will usually require a gift letter. This document must include:
The donor’s name, contact info, and relationship to you
The exact amount of the gift
A clear statement that it’s a gift, not a loan
The donor’s signature
Some lenders might also require documentation showing the transfer of funds and where they came from.
Watch Out for These Common Mistakes
Gift funds are a blessing—but they can also cause delays if not handled right. Watch out for:
❌ Depositing cash into your account without a paper trail
❌ Accepting funds from someone who isn’t allowed
❌ Trying to repay the gift under the table (that’s a no-go)
At Brick Mortgage, we walk you through it all so nothing gets flagged in underwriting. Smooth and stress-free—that’s the goal.
Let Brick Mortgage Help
Gift funds can open the door to homeownership—literally. If you're in Queen Creek, AZ, or anywhere in Arizona, we’re here to help you use them correctly.
Whether you’re a first-time homebuyer, working with family support, or just trying to make your down payment a little easier, we’ve got your back.
🎯 Ready to use gift funds for your next home loan? Contact Brick Mortgage today, and let’s make it happen—the right way.