In high-demand coastal markets like Wrightsville Beach and Hampstead, where home prices have risen faster than savings accounts, family assistance is becoming a common strategy for first-time buyers. Whether it’s parents helping with a down payment on a Surf City cottage or a grandparent contributing to a closing in Brunswick Forest, "gift funds" can be the bridge to homeownership.

However, in the world of North Carolina real estate, you cannot simply deposit a check and head to the closing table. Lenders—and the IRS—require a strict paper trail.

The "Seasoning" Problem

If a large sum of money suddenly appears in your bank account within 60 days of applying for a mortgage, underwriters will flag it. They must verify that the money isn't a secret loan that will strain your monthly budget.

The Fix: If family help is coming, the cleanest way to handle it is often to have the donor wire the funds directly to the closing attorney (not to you) just days before settlement. This bypasses your bank statements entirely, though a "Gift Letter" is still mandatory.

What is a "Gift Letter"?

This is a non-negotiable document signed by the donor. It must state three things clearly:

• The exact dollar amount.
• The donor’s relationship to you (e.g., father, grandmother).
• A statement that no repayment is expected. (This is crucial; if there is any hint of repayment, it is calculated as a debt, which could disqualify your loan).

Myth vs. Reality: Who Can Actually Gift You Money?

This is where many buyers in Onslow and Pender counties get tripped up, especially with FHA loans.

Myth: "My wealthy cousin or uncle wants to gift me the down payment, so I'm all set."

Reality: For FHA loans, cousins, nieces, and nephews are generally not considered eligible family members. While there are rare exceptions for "close friends with a documented interest," relying on a cousin for an FHA down payment is a risky strategy that often leads to denial. Conventional loans are slightly more flexible but still have strict definitions of "family."

The "Coastal" Insider Tip: Wire Fraud is Real

In North Carolina, real estate closings are handled by attorneys, not title companies. Wire fraud targeting these transactions is rampant in our region.

The Strategy: If your family member is wiring funds to a local law firm in Wilmington or Southport, never rely solely on email instructions. Hackers frequently spoof attorney emails. You (or your donor) must call the law office at a verified number to confirm the wiring instructions verbally before hitting "send."

Your Next Step

Coordinating family funds requires delicate timing and precise documentation to ensure you don't accidentally derail your closing.

Aspyre Realty Group are experts in listening and communicating people's wants into homes that work for them. We act as your strategic partner, connecting you with local lenders and closing attorneys who can guide your family through the gift fund process safely. Let's start the conversation so your financing is as solid as your new foundation.