Gift Fund Guidelines for Conventional Loans

Many people find it difficult to save for a down payment to buy their first home. That’s why it’s a big help when they receive a lump sum amount of money from a loved one that they can use to fund a down payment. It’s called a gift fund. Homebuyers taking out a conventional loan are required to follow guidelines if they will use a gift fund for their down payment. Lenders may not approve the mortgage if you could not prove the source of the gift fund.

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