Using gift funds for a home purchase is very common, especially for first-time buyers. Family members often want to help, and conventional loans allow for that. The key is making sure the gift is handled and documented correctly. Here’s how it works. What Is a Gift Fund? A gift fund is money given to a borrower that does not need to be repaid. It can be used toward the down payment, closing costs, or reserves depending on the loan structure. The most important rule is simple:
