Donors may borrow gift funds.
However, the person giving you the gift must prove that the money didn't come from the seller or someone with a financial interest in selling the house to you. Donors should have documents showing where they got the money. You can use the gift funds if the donor proves it's from an acceptable source, and you're not responsible for repaying the debt.
For example, your parents want to give you $15,000 to help you buy a house. Unfortunately, the money isn't readily available, so they take out a $15,000 loan from a bank and give it to you.
In this case, provide the lender with a copy of the loan statement or agreement. The lender will accept the gift as long as your parents are responsible for repayment.
Buying a home starts with a mortgage pre-approval. You can get yours today to take advantage of every opportunity to buy the perfect home.