Down Payment Gifts

Down payments can be one of the hardest things to overcome for first time homebuyers. Down payments can be extremely expensive, but the problem is they are extremely important. Since the Government has tightened home loan criteria, no down payment loans are no longer available. However, first time home buyers still need a way to be able to meet the down payment so they can proceed with purchasing their home. One of the easiest ways to get a down payment is to get a Gift from a Family Member.

In the past there have been Down Payment Gift Programs but very few organizations offer down payment gift options to home buyers. Accepting a Gift from Family can be contentuous but compleely rwarding if handled properly. First you need to establish the terms of the Gift. Talk openly and put the agreement in writing so there are no misunderstandings. Secondly, be sure and check the possible tax consequenses of accepting a large cash gift. If your parent write you a check for $100,000, it might be taxable.

The home buyer must also qualify for a loan that allows gift funds. The funds provided can be used for down payments and/or closing costs. These funds can be used for new or existing homes.

Down payment gift programs are just one way to help encourage new buyers to go through with their objective to buy their very own home. Buying a home can be expensive and extremely difficult, especially for new buyers, and down payment gift options are just one way to help make the process a little bit easier and more manageable. But as always, the best and most rewarding way to buy your first home is to start saving immediately. The reward is well worth the wait.