Homeownership is generally more difficult today than it was 20 or 30 years ago, largely because home prices have risen faster than wages. At the same time, many parents and relatives who have built wealth want to help loved ones now rather than wait to pass it on later.
Those gifts can be very helpful when buying a home, as well as qualifying for a police officer mortgage. If a family member wants to contribute, the funds can often be used toward the purchase, depending on the loan type and lender guidelines.
In some cases, borrowers may still need to contribute part of the down payment or initial investment from their own funds, but that depends on the specific loan program. That is something to review with the lender during the application process.
Because housing costs have climbed so much, gift funds from parents, grandparents, aunts, uncles, or other relatives have become increasingly common. Many families want to help sooner so they can see the benefit of that support while they are still living.
Using gift funds typically requires documentation, such as a gift letter and proof of where the money came from. As long as the required paper trail is provided, those funds can often be applied toward the down payment.
Lenders work with gift funds regularly, so this is a familiar part of the mortgage process when handled correctly. And while finding a “rich uncle” may be a joke, many buyers do rely on family support to make homeownership possible.
For more information on mortgages for police officers and other first responders go to www.policemortgage .com.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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