Did you know? Nearly 25% of first-time home buyers use cash gifts as
Yes, it’s true.
Many people find it difficult to purchase their first home when cost meets financial constraints (like having to pay off student loans despite good-paying jobs).
Here’s where caring friends and family may step in and help out—by offering a gift fund or a gift of equity.
What Is a Gift Fund and What Is a Gift of Equity?
When you’re looking to buy a house and you’re getting a loan, any money that your relative wants to contribute toward the purchase of your home is called a gift fund. Gift funds are common when a person buying a home doesn’t have all the liquid money to purchase it and a relative is willing and able to help supplement their financing needs.