Using Gift Funds to Purchase Your Dream Home: What You Need to Know
As a physician looking to buy a home, you may have heard about gift funds and how they can be used to help you purchase a home. Gift funds are funds that are given to you as a gift to help you cover your down payment or closing costs. In this blog, we’ll explore what gift funds are and how lenders have different requirements for gift funds. We’ll also explain how Curbside Real Estate can help you navigate the home buying process.
What Are Gift Funds?
Gift funds are funds that are given to you as a gift to help you purchase a home. Gift funds can be used to cover your down payment, closing costs, or other expenses associated with buying a home. Gift funds can come from a family member, friend, or other interested party, but they must be a true gift and not a loan.
Lender Requirements for Gift Funds.
Lenders may have different requirements for gift funds, so it’s important to understand their policies before accepting gift funds from a third party.
Lenders requirements for gift funds may include:
Gift letter: Lenders require a gift letter to document the funds and ensure that they are a true gift and not a loan. The gift letter must include the name and contact information of the person providing the gift, the amount of the gift, and a statement that the funds are a gift and do not need to be repaid.
Verification of the source of funds: Lenders will typically require documentation to verify the source of the gift funds, such as a bank statement or a copy of the check.
Seasoning requirements: Some lenders have seasoning requirements for gift funds, which means that the funds must be in your account for a certain period of time before they can be used for a down payment or closing costs.
Down payment requirements: Lenders may have different down payment requirements for borrowers who use gift funds, depending on the type of loan.
How Curbside Real Estate Can Help.
At Curbside Real Estate, we understand that navigating the requirements for gift funds can be overwhelming, especially for physicians who may have complex financial situations. That’s why we work with the best lender partners who can help you understand their policies and requirements for gift funds.
Our lender partners can help you navigate the process of using gift funds to purchase your dream home, ensuring that you meet all the lender’s requirements and guidelines. Additionally, we offer a free Curbside Consult, where you can speak with our team and get personalized advice on your home buying journey.
If you’re a physician looking to purchase a home using gift funds, let Curbside Real Estate help you find the right lender partner who can guide you through the process. Schedule a free Curbside Consult with us today to get started on your home buying journey. Don’t have time for a call? Provide us a few details in this form and we will match you with the right partners for your home purchase.