Am I allowed to get a gift for closing costs and down payment? If so, who am I allowed to accept gifts from?

Yes, you can use gifted money for closing costs and down payments. Lenders understand that coming up with enough money for these important line items can be a big challenge. That’s why many borrowers are allowed to use monetary gifts to help cover those costs. However, the key here is that there are rules about who can give you those gifts. Let’s break it down based on your mortgage type:

• Fannie Mae and Freddie Mac (Conventional): Acceptable donors include family, a fiancé or domestic partner. Friends are not allowed.

• FHA: Acceptable donors include family, a fiancé or domestic partner. Friends are also allowed, but your relationship must be clearly defined.

• USDA: The USDA allows gifts from family, employers, charitable organizations or even homeownership assistance programs.

• VA: Gifts from family or close individuals in your life are acceptable for VA loans.

Using gift money for your down payment is a great way to make your home purchase more affordable, but it’s important to follow the rules to ensure everything goes smoothly. For more detailed advice, it’s always best to chat with a mortgage expert to make sure everything’s in order.