Yes, parents can gift funds for down payment and closing costs in most loan programs. However, it must truly be a gift — not a loan disguised as a gift. Lenders will typically require a gift letter and documentation showing the transfer of funds. I’ve seen transactions delayed simply because buyers moved money without telling anyone. Transparency is everything in underwriting. When structured properly, family assistance can make homeownership possible sooner. It just needs to follow the rules.
Please consult your Mortgage Advisor for guidance specific to your situation before making changes.
