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Can Family Help With Your Down Payment? The Truth About Gift Funds in Las Vegas

Written by Kimberly Smith - Your trusted Las Vegas Real Estate Queen


The Question Every Buyer Asks

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Down payments can feel overwhelming, especially for first-time buyers. A common question I hear is: “Can my family help with my down payment?”

The short answer: Yes. But like everything in real estate financing, there are rules. Lenders want to make sure the money you’re using is stable, traceable, and not another hidden loan.


🏦 What Counts as a Gift in Mortgage Terms?

A gift is money given toward your down payment with no expectation of repayment. That’s the key difference.

If repayment is expected, lenders view it as debt, and that debt can impact your approval. To keep things clear, here’s what lenders require:

  • A Signed Gift Letter — stating the money is a gift, not a loan

  • Proof of Transfer — bank statements, wires, or cleared checks

  • Eligible Donors — usually immediate family (parents, siblings, grandparents, children); some programs allow fiancés or close relatives

💡 Real Estate Queen Tip: Surprise deposits can slow down or even stall your loan. Always let your lender know about gift funds in advance.

📄 Which Loan Types Allow Gift Funds?

  • Conventional Loans: Gifts usually allowed from family members; the full down payment can be a gift in many cases.

  • FHA Loans: Gift funds allowed, but donors must be family, fiancés, or close friends with a documented relationship.

  • VA Loans: While no down payment is required, gift funds can help with closing costs.

  • Jumbo Loans: Often stricter rules; some lenders may require the buyer to contribute a portion themselves.

❌ Common Mistakes With Gift Funds

  • Cash Deposits With No Paper Trail: Lenders won’t accept “mattress money.”

  • Unqualified Donors: A coworker or friend usually doesn’t count.

  • Late Disclosure: Waiting until the last minute to mention gift funds can delay closing.

👑 Kimberly’s 5 Star Approach

Gift funds can be a wonderful way to ease the path to homeownership — but they must be handled correctly. That’s why I guide my clients with my 5 Star Approach:

  • Queen Quality — clear guidance on lender-approved steps

  • Understanding — making sure your family knows what documentation is needed

  • Excellence — keeping your loan package clean and strong

  • Efficiency — preventing last-minute surprises that slow closing

  • No Nonsense — telling you upfront what will and won’t work

✅ Final Word

Family help can make your dream of owning a Las Vegas home a reality. However, the key is to follow the rules, so gift money helps — not hurts — your loan approval.


👑 Kimberly Smith is a top Las Vegas Realtor known for her sharp market insight, strategic approach, and commitment to helping clients move smart—whether buying, selling, or just exploring what’s next. She’s not just a local expert—she’s The Real Estate Queen of Las Vegas.

📞 Connect with Kimberly:📍 Serving Greater Las Vegas | 🏡 Luxury + Residential

📲 702-706-5885

📱 Follow on Instagram: @realestatequeenoflasvegas


 
 
 

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