Gift Funds
Money given to you by family or another approved source to help with your down payment or closing costs.
In plain English
Gift funds are money contributed toward your purchase — typically by a relative — that isn't expected to be repaid. Lenders require a signed gift letter confirming the funds are truly a gift, not a loan, plus documentation of the transfer.
Using gift funds is very common and fully allowed on most loan programs, but skipping the paperwork can delay or derail your closing — loop your lender in early.
Where you'll run into it
Guides and tools on TheBuyingPath that cover gift funds in context.
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