Yes, many loan programs allow gift funds from family members to cover down payment and sometimes closing costs. The key is documentation. The lender must verify the source of the gift and confirm that it is not a loan that requires repayment. Where buyers get into trouble is depositing large sums into their bank account without documentation. That creates underwriting questions. Gift funds are common and perfectly acceptable — when handled correctly and documented upfront.
Please consult your Mortgage Advisor for guidance specific to your situation before making changes.
