Can my family help me finance a new home?
Yes. Family can help with money, with income and credit, or both. Which way works best depends on the loan program and on everyone's finances.
In California, families often buy together. Parents help adult children, siblings combine incomes, and several generations live under one roof. Lenders have clear ways to handle each of these.
Can I use gift money for my down payment?
In most cases, yes. Gift funds from family are allowed on many loan programs, and I use them on most of my loans.
The lender will want proof that the money is a true gift, not a loan you have to repay. That usually means a signed gift letter and records showing the money moving from the giver's account to yours. Depending on the loan type, a gift can come from a family member, an employer, a charitable organization or a government agency. Talk to me before the money moves, so we document it the right way from the start.
Gift funds can cover closing costs as well as the down payment.
Can my parents co-sign my mortgage?
Yes, and it's common. When a parent joins the loan, the lender counts their income, debts and credit along with yours. That can help you qualify for a home you couldn't on your own.
A co-borrower is fully responsible for the loan. Late payments affect their credit too. Everyone should understand that before they sign.
Does FHA allow non-occupying co-borrowers?
FHA has specific rules for a co-borrower who won't live in the home, such as a parent who keeps their own house. I'll check how those rules apply to your family before you make an offer.
How many people can be on one mortgage application?
Up to four people can be on one application. That allows, for example, two spouses and two parents to apply together. Every person's income, debts and credit become part of the file.
Do down payment assistance programs allow co-borrowers who won't live in the home?
Not always. CalHFA's MyHome program, for example, does not allow non-occupant co-borrowers. Source: www.calhfa.ca.gov
If you plan to combine family help with an assistance program, ask me first. Some combinations work and some don't.
What should family members know before they help?
They should know exactly what they're agreeing to. A gift is money they don't get back. A co-borrower signs the loan and shares the responsibility. I'm happy to explain this to parents directly, in English or Spanish, so everyone feels clear before moving forward.
How do we start?
The buyer can apply online, and we'll add any co-borrowers to the same application. Or call me at 562-743-6666 to talk it through as a family first.
Reviewed by Bernardo Esparza, NMLS #906396 · Updated October 2026