A straight answer
Can my parents help me with the down payment?
The direct answer
Yes, often. Parents can give a gift, co-sign, buy with you, or use equity in their own home, and each one shows up differently in your loan file. I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente.
I'd rather settle the structure before any money moves between accounts. I work with buyers in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-17
Parents want to help? Text me how, before any money moves.
No credit pull happens from a conversation. Texts go to Zach's cell.
Can my parents give me the down payment as a gift?
Usually, yes. Under Fannie Mae's rules a relative can give gift funds toward the down payment, closing costs or reserves on a home you'll live in or a second home, but not on an investment property. Your parent signs a gift letter stating the amount and that no repayment is expected, and the lender verifies the money in your parent's account or the transfer to yours.
Other programs have their own gift rules, so tell me who is giving the money and what you're buying, and I'll tell you what the lender will need. Whether the gift has tax consequences for your parents is a question for their tax professional.
If you are a first-generation buyer in California and hold a Dream For All voucher, here is what to do next with the voucher.
If the money your parents would give sits in crypto, or your own does, here is how crypto can fund a down payment.
If your parents are selling you their own home below market value, the difference is a gift of equity, and can the equity count as my down payment? walks through what has to be on paper.
Can my parents co-sign my mortgage?
Potentially. In Fannie Mae's terms, a co-signer signs the note and is jointly liable for it without being on title, and a non-occupant borrower signs the note and may or may not be on title. Either way your parent is taking on a real loan obligation, not lending you a credit score. I'd run the file both ways first so everyone knows whether your parent actually needs to be on the loan.
The other direction has its own page: if you are the one buying a home for a parent who cannot work or cannot qualify, can I buy a home for my parents without it counting as a rental? covers Fannie Mae's occupancy exception.
Can I buy the house together with my parents?
Yes, co-buying can work when the loan and the ownership structure allow it. If more than one person will own the property, talk with a real estate attorney about a written co-ownership agreement covering contributions, expenses, who lives there, decisions and what happens when someone wants out. I handle the mortgage side, not the legal agreement.
Can my parents use a HELOC on their house to help me buy?
Potentially. If your parents qualify for a HELOC on their own home, they may be able to use the money to help you, and I arrange HELOCs, so I can look at their side too. How your purchase loan treats that money depends on how it reaches you. A gift needs a letter saying no repayment is expected, so if your parents expect to be paid back, say so up front and we'll structure it honestly. I'd coordinate both sides before anyone draws on the line.
Ready to shop? Get pre-approved, and tell me how your parents are helping so the letter reflects it.
Questions people ask next
Can my parents gift the entire down payment?
On a one-unit home you'll live in, Fannie Mae allows all the funds needed to come from an acceptable donor's gift. Two- to four-unit homes and second homes can require some of your own funds, depending on the down payment, and other programs set their own rules.
Does my parent have to be on title if they co-sign?
Not under Fannie Mae's definitions: a co-signer signs the note without an ownership interest on title, and a non-occupant borrower may or may not be on title. Other programs set their own rules, and title itself is a question for your attorney.
Should we have a co-ownership agreement?
If more than one person will own the home, I'd talk with a real estate attorney about one before closing. I don't draft it, and I'd rather you have one than not.
Can my parents use a HELOC for my down payment?
Possibly. It's their loan on their home, so they should be comfortable carrying it. I'd check how your purchase loan will treat the money before they draw on it.
Does a gift have to be repaid?
No. A real gift isn't a loan: Fannie Mae requires the gift letter to include the donor's statement that no repayment is expected. If your parents expect to be repaid, tell me, because that changes how the money is treated.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
Word for word from Experience.com. Read all reviews.
Sources and checked dates
Sources: Fannie Mae Selling Guide, B3-4.3-04, Personal Gifts (checked 2026-10-07) · Fannie Mae Selling Guide, B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction (checked 2026-10-07) · Supplied by Zach, September 9, 2026 (checked 2026-09-09).
Show each claim on this page, what it depends on, and the date it was checked (3)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Fannie Mae Selling Guide B3-4.3-04: a borrower on a principal residence or second home may use a personal gift from an acceptable donor, including a relative, for all or part of the down payment, closing costs or financial reserves, subject to minimum borrower contribution rules; gifts are not allowed on an investment property. For a one-unit principal residence no minimum contribution from the borrower's own funds is required. The gift letter must state the amount and include "the donor's statement that no repayment is expected," and the lender verifies the funds in the donor's account or their transfer. | Fannie Mae Selling Guide, B3-4.3-04, Personal Gifts | 2026-10-07 |
| Fannie Mae Selling Guide B2-2-04: guarantors and co-signers sign the note and have joint liability for it but do not have an ownership interest in the property as indicated on the title; non-occupant borrowers sign the note, have joint liability, do not occupy the home, and may or may not have an ownership interest on title. They are permitted on purchase, limited cash-out and cash-out refinance transactions. | Fannie Mae Selling Guide, B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction | 2026-10-07 |
| Zach reports placing loans through more than one wholesale lender and program via his broker channel: the standard home equity line described on this site, plus conventional, government, bank statement and investment-property options. Individual lender names are kept off the public pages until the executed broker agreement for each is on file (California 10 CCR 2848(a)(3)). | Supplied by Zach, September 9, 2026 | 2026-09-09 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-17.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.
Text Zach about how your parents want to help
Tell me what you're buying and how your parents want to help: a gift, co-signing, buying together, or their home equity. I'll tell you what the lender will need before any money moves.
No credit pull happens from a conversation. Texts go to Zach's cell.