For many first-time buyers in Southeastern North Carolina, the path to homeownership isn't walked alone—it’s paved with a little help from family. Whether it’s a generous holiday check from grandparents or parents offering to "match" your savings, gift funds are a legitimate and common way to bridge the gap between renting and buying.

However, in the world of mortgage lending—and specifically in North Carolina real estate law—you cannot simply deposit a check and write an offer the next day. If you plan to use gift funds to buy a home in 2025, you need to follow a strict set of rules to ensure that generosity doesn't trigger a red flag with your lender.

The "Who" and "How Much"

The good news for 2025 is that lending guidelines for gift funds remain favorable.

FHA & VA Loans: generally allow 100% of your down payment to come from gift funds.

Conventional Loans: also allow for gift funds, though if you are putting down less than 20%, some lenders may require a portion of the funds to come from your own savings.

Note: As of 2025, the IRS annual gift tax exclusion is $19,000 per person. This means a parent can gift you (and your spouse separately) up to this amount without needing to file a gift tax return. Always consult a tax professional for your specific situation.

The North Carolina "Due Diligence" Trap

This is the most critical section for buyers in Wilmington, Hampstead, and Bolivia.

In most states, your upfront costs are held in a refundable escrow account. In North Carolina, we have the Due Diligence Fee. This is a non-refundable check written directly to the seller immediately upon going under contract.

The Trap: Many buyers assume they can get the gift money "at closing." But if you need $3,000 or $5,000 for a Due Diligence fee to secure a home in a competitive market like Porters Neck or Surf City, you need that cash liquid and available right now.

Strategy: If a family member is helping you, ask for the funds to be transferred to your account months before you shop, not days before you close. You cannot write a Due Diligence check from an account with insufficient funds hoping a wire transfer arrives the next day.

The "Paper Trail" is Mandatory

Lenders have a federal obligation to prevent money laundering, so "mattress money" (cash you deposit that cannot be traced) is rarely accepted. To use gift funds, you must follow the Paper Trail:

The Gift Letter: Your lender will provide a specific form. It must state that the money is a gift, not a loan, and there is no expectation of repayment.

The Transfer Evidence: You will likely need a copy of the donor's bank statement showing the withdrawal and your bank statement showing the deposit. The numbers must match exactly.

Seasoning: The easiest money to use is "seasoned" money—funds that have been sitting in your account for 60+ days. If the money has been there for two months, lenders often don't ask for the source.

Don't Let Generosity Derail Your Closing

Accepting help for a down payment is a smart leverage move, but it requires coordination. The worst time to find out your "gift" is ineligible is one week before closing.

At Aspyre Realty Group, we understand the nuances of North Carolina’s unique contract laws. We don't just show you houses; we help you strategize your liquidity so you are ready to write that Due Diligence check with confidence. We act as the bridge between your family's generosity and a successful closing.

If you have been gifted funds this holiday season and want to know how to position them for a purchase this spring, let's connect.