Mortgage lenders allow financial gifts to first time home buyers that can be used towards the down payment on a home. These gift funds are a valuable tool for first time home buyers and may be used for conventional loans, FHA, USDA type loans, and even VA. However, they are most commonly seen paired with conventional and FHA type loans. In fact, many first time home buyers are happy to learn that FHA gift funds can reduce their required cash to zero!
The first step to buying any home is financing. Knowing what you are able to afford is essential when searching for a home suited to your individual needs. With so many financing options available, it can be confusing. Every buyer wants to know that they have done the right thing and have chosen the best possible financing option for their particular situation.