Cindy Herrera

This comes up all the time for my first-time homebuyers. The good news is yes, your family can help with your down payment! Lenders just have rules on how that " gift moneyaEUR? is received. It has to be documented with a gift letter and a clear paper trail. The safest way is having your family transfer the funds directly from their bank to yours (or to escrow) so it's clean and easy to verify. What you want to avoid is cash deposits or money bouncing between accounts, that's when lenders start saying no. Tip: talk to your lender before your family moves the money, so you don't have to redo anything. With the right steps, family gifts are one of the best ways to get into your first home faster and with less stress.

I love this question because more first-time homebuyers in the West Valley (Peoria, Goodyear, Surprise, Buckeye, etc.) are asking about mortgage buydowns right now. The short answer: yes!! Family can usually help cover a temporary mortgage buydown, but it has to be set up the right way. Just like with gift funds for a down payment, the lender needs it documented. The money can't just be handed over, it has to be contributed through escrow and tied to the loan process so it's a clean, traceable paper trail. Some lenders may have extra forms or require it to be called a " seller/lender concession,aEUR? so always loop your lender in before your family wires a dime. Tip: If your family is putting up that kind of money ($17K), ask your lender to run side-by-side scenarios (2-1 buydown vs. permanent rate buy-down). Sometimes the math works out better one way or the other, and this way you get the most out of their generosity.