The plasters used to get gravy boats and finally China as wedding gifts, but now, with interest rates and rising housing prices, more newlyweds are looking for cold and difficult money to dive into a home.
“Most couples have already lived together at the time they get married, so they are less interesting in the recording of closet cars and espresso, as they already have household items,” says Cara Ameer, Coldwell Banker Vanguard Realty in Florida. “What they miss is a nesting egg to buy a home.”
According to a recent borrowing study, 48% of homeowners who subsequently in the last two years sought payment assistance from wedding shells instead of traditional gifts.
“I recently worked with a couple who used some of their wedding gifts to help their payment,” says the real estate agent in Florida Myers. “With the prices of the apartments standing up, I think more couples can start watching gift money as a way to get into their first home faster. This gives them a head start without getting more debt.”
While for some it may seem useful, gift money is a smart way to move towards your dream to own a home – without much tax implications.
How much should they save the newlyweds for a payment?
The usual rule for home buyers is to aim for a 10% to 20% payment of home shopping price.
For example, a Realtor.com® report issued earlier this month found that home buyers open $ 29,900 on average for a low payment and 14.4% as part of the purchase price in 2024.
But low payment is just one of the front costs needed to buy a home. In addition, buyers should save for the closure of costs.
These fees, paid for third parties to help facilitate the sale of a home, usually a total of 2% to 7% of the home purchase price.
The average home pricing in March 2025 increased to $ 424,900 – meaning that the average closure costs will range between $ 8,498 and $ 29,743.
Gift money rules for a low payment
In recent years, the bride and groom have asked their shells to donate certain money for specific use, such as honeymoon activities and home furnishings. Talent money for use towards a payment below are not unheard of. In fact, it has become quite common. But gift money has to be declared in your taxes.
Whether you are a wedding guest or a wealthy family member, an individual can donate up to $ 19,000 to a single recipient, or $ 38,000 for a married couple, in 2025 without tax tax responsibility, according to Fred Goncher Mortgage Corp. In Garnerville, NY.
But overcoming the annual exemption of the gift tax does not mean that you have to pay a gift tax.
You only have to pay taxes if you exceed the exemption of the Lifetime Gift Tax.
“Gift tax is not something regular people should ever be away,” Goncher says.
What about property taxes?
“If the gift is not in eight figures, they will not apply,” Goncher says.
If you were receiving a great gift from one person, you are likely to need a gift letter to the lender explaining the source of funds.
“However, after receiving a gift letter from wedding donors would be embedded, the lenders instead require wedding evidence and a copy of the wedding deposit,” Goncher says.
Using gift money vs. a conventional credit
What are the pros and cons of using gift money against a conventional loan?
If your cash gift is enough to pay the property completely, “the payment of money is often a faster and simpler process against getting a loan where you will be required to secure the documentation for income, assets and tax return on the lender,” Ameer says.
If you are funding the property, the current rules of Fannie Ma considered a documented gift as the same as the borrower’s funds, according to Goncher.
There may be a little more documents included, but “having gift funds can reduce the money needed for payments and closing costs,” Goncher says. This is a victory.
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