Down payments can be one of the hardest things to overcome for first time homebuyers. Down payments can be expensive... 5% to 20% or more, with FHA being the most affordable option at about 3.5 to 5%. But down payments are necessary, I’m afraid the days of “no down payment” home loans are long gone..

First time home buyers need a way to be able to meet the down payment so they can proceed with purchasing their home, and one of the forms of assistance that can be found to achieve this is a down payment gift..

Parents can assist their children in buying a home by offering them a gift toward their down payment and closing the costs. This gift which is allowed by Fannie Mae, Freddie Mac and also FHA may come in two forms. The first form is as a cash gift where the child may use these funds towards their down payment. According to gay realtor, FHA will allow a cash gift from parent for the entire required minimum down payment of 3.5% of the purchase price..

A gift may also come in the form of equity which is already in your property. This would be possible if the parents decide to sell their home to the children.  In this method the parents set a purchase at or below the appraised value of the property in which they agree to sell their home for. Then they will agree to give their child a gift of equity, from as little as 3.5% to as much as they wanted to..

Down payment gift options are just one way to assist new buyers with their objective of home ownership. Gay Realtor understands buying a home can be expensive and extremely difficult, especially for new buyers, and down payment gift options are just one way to help make the process a little bit easier and more manageable..

You can talk with your parents and make the necessary arrangements to get the gift and purchase the home you want in a convenient way ~ but always check in with your gay realtor buyers agent, or mortgage lender to make sure the transfer of funds is handled in the proper way to meet the lenders requirements..

Author Jeff Hammerberg is the Founding CEO of http://www.GayRealEstate.com. Free Instant Access to the Nation's Top Gay, Lesbian and Gay Friendly Realtors Coast to Coast. FREE Buyers Representation ~ Free Relocation Kit to any City, USA ~ Free Sellers Market Analysis for home sellers..