I've been reading here that the first 5% has to be my own money and that the rest can be a gift. But I just asked my LO, and she said that all of it can be a gift. Now I'm confused.
I think all of it can be a gift if its 20 percent down. But I think you still need skin in the game if your down payment is below 20 percent.
I don't know the exact rules, but I would imagine you would need at minimum 3 percent down out of your own funds. Unless of course you put down 20 percent, then it dont matter where the money is coming from.
We are currently going through PrimeLending and we are going with a 5% down conventional loan. The lender said that for conventional loans you have to put down the first 5% from your own funds. Above and beyond that everything else can be a gift. As well, your other closing costs and prepaids can be a gift. We asked because there was a possibility that my husband's parents could put in another 5% and give us a total of 10% down, but that didn't work out.However, I'm not sure if the rule is lender specific.
Guidelines state that if over 20% the entire downpayment/closing can be gifted. If below 20% you must have 5% of your own money.