Gifts for Downpayment

December is the time of year when families and friends give gifts to each other. It’s a great tradition, who doesn’t love another ugly Christmas sweater? If you are planning to purchase a home but are “saving” for the down payment this is the time of year to request down payment assistance rather than gifts.

One of the three big obstacles that first time homebuyers face is the down payment and closing costs. As Realtors know, depending on location and timing you can get the seller to cover some or all of the closing costs. But how about a down payment? Gift funds are allowed on mobile home purchases. And with as little as $10,000 (5%) needed, on a $200,000 purchase this makes a holiday purchase within reach of many families.

Let’s continue this scenario, a $195,000 mortgage with good credit has a monthly payment of $1,595 today, add in space rent, taxes and insurance and the monthly cost of purchasing a home is about $2,600. Zillow posts (Dec 2023) the median rent in CA for all property types is $2,757. We encourage you to contact us for a purchase planning session and pre-approval.