Ensuring you have enough funds for a down payment can be daunting, especially for first time home buyers. To help mitigate the financial strain a down payment can cause many families of first time home buyers offer to contribute funds towards the down payment.
While it is possible to use gifted funds as part or all of your down payment your lender will still want to verify where the funds are originating from. To show this you will likely be required to present your lender with a gift letter, signed by the family member or members involved, and provide bank statements in your name that demonstrate that the money you have been gifted has already been deposited into your bank account.
Once you have provided the appropriate documentation you should be able to use the gifted funds to help cover the cost of your down payment.
If you have any questions regarding the use of gifted funds for a down payment, or any other questions about mortgages or the mortgage application process, you should contact your mortgage broker. They will be able to offer you more detailed information based on your unique financial situation and home ownership goals.
