What Are Gift Funds?

What Are Gift Funds?

Sometimes when purchasing a home, a buyer will choose to get gift funds from typically a family member, in order to help them with their down payment and or closing costs.

For example, the buyer needs about $5,000 just in order to make sure they have enough money to close. And so they will go to their parents in order to get that money. And what the parent will need to do is fill out a gift letter and possibly provide a bank statement sourcing that where those funds are coming from so that the buyer can use that money in order to close.

So if you have any questions, please leave a comment below. Please share with anyone you think it’d be helpful to. And as always, close with Patrice.

This has been “What Are Gift Funds?” by Patrice Henderson of Designed Living Real Estate. Be sure to subscribe to her YouTube channel for all your real estate tips, home tours and advice.

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