The Bottom Line Lender credits can help pay closing costs, but the help isn’t free. The buyer still pays closing costs in the form of a higher monthly payment throughout the life of the loan. Closing costs could range from $9,700 to over $15,000 for a $400,000 home, according to Fannie Mae’s closing cost calculator. These funds are due upfront and are in addition to your down payment. But lenders can help buyers pay their closing costs through lender credits. In return for helping cover...

The Bottom Line Gift money can come from relatives and even friends in some cases. It can cover your down payment and/or closing costs, reducing or eliminating the cash you need to close the home purchase. Money from a friend or family member could make all the difference. The gift could push you over the top when you’re struggling to save a down payment, making a new home possible. But the unusually large sum of money in your bank account could also complicate mortgage approval. Before...