Justice Federal is committed to enabling aspiring first-time homebuyers to own a home by overcoming the down payment obstacle.

Our First-Time Homebuyers Mortgage Requires A 3% Down Payment, That May Be Gifted Entirely Or In Part!

We realize that accumulating funds for a down payment can be challenging, especially with rising home prices nationwide. Even smaller down payments require a significant sum, making it tough for many buyers to reach their savings goals.

One way to bridge the gap is by using funds gifted from immediate family members including parents, grandparents, siblings, aunts, uncles, and domestic partners, and even future in-laws, to be used to fund a portion or the entire 3% down payment.

The First-Time Homebuyers Mortgage Offers‒

• 3% Down Payment, that may be from gift funds in part or entirely
• 97% Financing*
• 30-Year Term*
• Flexible Debt-to-Income
• Must be a single-family, one-unit home
• Maximum sales price, conforming loan limit $832,750 for a single-family home for most of the U.S.

The Definition Of A First-Time Homebuyer

It might come as a surprise that a first-time buyer is defined not only as someone who has never purchased a home, but also as an individual who has not owned residential property within the past three years.

Here’s An Example Of What A 3% Down Payment Might Look Like:

• Home price, $300,000, 3% down payment = $9,000
• Home price, $500,000, 3% down payment = $15,000
• Home price, $700,000, 3% down payment = $21,000

In today’s real estate market, even a 3% down payment requires a substantial amount of cash, which is why many homebuyers are turning to gift funds to ease upfront costs. Unlike a loan, gift funds do not need to be repaid. However, documentation is required to confirm that the money is indeed a gift and not disguised as a loan.

Gift Money And Tax Implications

When using gift funds for a mortgage down payment, it’s essential to be aware of potential tax consequences. As of 2026, the IRS allows individuals to gift up to $19,000 per recipient annually without triggering gift taxes. Married couples can collectively gift up to $38,000 per recipient. Amounts exceeding this threshold may require the donor to file a gift tax return and may or may not result in taxes being owed. Consult a tax advisor for details.

For recipients, down payment gift funds are not considered taxable income, meaning you won’t need to report them on your tax return. Consult a tax advisor for details.

Earn Money At Closing – With HomeAdvantage^®

Simply buy or sell using a HomeAdvantage Agent and earn on average $2,200 in Cash Rewards at closing.**

We're Here To Help You Every Step Of The Way.

Whether you're exploring down payment options or need expert advice on using gift funds, we’re committed to helping you achieve your homeownership goals.

We're Here to Help You Every Step of the Way
To learn more about how we can help you realize homeownership using your Member benefits, contact a Justice Federal Mortgage Representative today.