How gift funds work for a California down payment

What counts as a gift

If someone gives you money for a down payment, the lender needs to know it's actually a gift.

Not a loan you'll pay back later.

Usually it comes from family. Parents, grandparents, siblings.

Some loan programs allow gifts from a fiancé or domestic partner.

The person writes a short letter saying the money is a gift, that you don't have to repay it, and what their relationship to you is.

I'll send you the template. Takes five minutes.

The lender wants to see where the gift money started.

If your mom writes a check, we'll need a recent bank statement from her account showing she had the funds.

If she transfers it directly into your account, we document both sides.

This isn't invasive. It's just proof the money is real and legal.

If the gift is large, plan for a paper trail.

Get the money into your account early if you can.

If it's been sitting there for two months before we pull your bank statements, we call it seasoned. No extra paperwork.

If it lands the week before closing, that's fine too. We just need the letter and the donor's statement.

Either way works. Just tell me upfront so I know what to expect.

Most first-time buyers get help from family.

I'll tell you exactly what we need, when we need it, and how to keep it simple.

If you're expecting a gift or already received one, call me.

We'll make sure it's documented right the first time.