Using gift funds for your down payment on a home

True or false? Your parents or other relatives can always make your down payment for you. True some of the time.

Some loan programs require the buyers to pay part of their own down payment, but for conventional loans up to $1,149,825 for a primary residence, a gift from family for your whole down payment is allowed.

Larger loans and some other loan programs require 5 percent of the buyer’s money in addition to gift funds.

Gifts need to be documented with a gift letter and paperwork such as a wire transfer receipt and a transaction history.

If you are planning on using gift funds for your down payment, let your lender know ahead of time to make sure they are ok with it and to ensure you meet all requirements.